Self-insuring Healthcare of Your Employees….It Can Make "Cents"

 

As the cost of health insurance soars many businesses are looking for solutions to help offset the overall cost of health insurance. According to a recent article, over 82 percent of businesses with at least 500 employees self-fund their healthcare insurance compared to less than 30 percent of employers with under 500 employees. However, the trend of those under 500 employees self-insuring is on the rise. Self-insuring is not a new idea or concept and with the Patient Protection and Affordable Care Act ("PPACA"), it makes sense for a lot of companies to look at this strategy. I recommend looking into self-insuring if you are over or close to 100 employees. Furthermore, even if you were able to provide a minimum value plan at renewal last year this year may be different story.

Due to minimal participation in minimum value plans, the cost of providing these plans to your employees will greatly increase. Buying insurance is like buying eggs from farmer. The farmer will sell you a dozen of eggs for $2.00. However, if you want to buy 100 dozen eggs the farmer will be able to sell you the eggs cheaper. Right now there is a perception going around that the employer mandate is going to "go away", but the fact of the matter is that the employer mandate is the law of the land as of today. You should not bank on the fact that the employer mandate is going to disappear. By beginning to work with Ratliff Law Firm now you will be able to secure your spot for self-insuring and likely receive cheaper rates from third-party administrators ("TPAs"). Waiting until October or waiting until you get your first IRS bill or DOL/IRS audit is NOT what your business wants or needs to do. Self-insuring possibly saves you money, can be better for your employees, and prepares you in the event of audits or IRS bills. Do not delay to see if self-insuring your healthcare insurance can benefit you. For a more in depth conversation on how self-insuring healthcare can benefit you call Adam Bullock at (865) 932-3441 ext. 706.

 

This is not intended to be legal advice and does not form an attorney-client relationship with any reader.