Self-Funded Insurance

Self-Funded Insurance

* Click on the image below to view the full "What is Self Funded Insurance?" infographic *

Click on the image to see the full infographic

Click on the image to see the full infographic

There is an 80% probability that a company, with 100 or more employees and a fully-insured medical plan, is over-paying for their employees’ health insurance. Based on insurance industry statistics:

– 80% of all medical claims are from as few as 10% of the covered population;

– Insurance carriers provide coverage at what they call a “composite or average price”; and

– The “composite or average price” is determined from demographic factors, and the “pooling” of claims.

Based on this information, a reasonable conclusion is that 80% of the “healthier” employee groups are subsidizing the “sickest” 20% of employee groups. This “perfect storm” often provides the opportunity for an employer to enjoy significant savings, with a properly designed self-funded medical plan.

Benefits Planning Service has over 30 years’ experience in designing self-funded medical and dental plans; and that experience unequivocally indicates that “not all self-funded health insurance plans are the same, or will produce the desired results”. We have a long track record of successfully reducing our clients’ average annual costs for employee benefits by up to 30% compared to comparable fully-insured plans.

Self-Funded Case Studies

Below are several actual case studies of benefit plan cost reductions our Self-Funded clients have experienced after retaining BPS as their broker. Our design & purchase strategies will typically save an employer 10-30% over current premiums. Whether your company is small or large, growing or downsizing, we can help.

Self-Funded Case Study #1

Industry: Hotel Chain
Employees: 300

Before BPS: $2.04 Million
After BPS: $1.16 Million

Cost Savings:
$.88 Million

43% Annual Savings

Self-Funded Case Study #2

Industry: Steel Products
Employees: 175

Before BPS: $1.85 Million
After BPS: $1.15 Million

Cost Savings:
$.70 Million

38% Annual Savings

Self-Funded Case Study #3

Industry: Financial Svcs
Employees: 1100

Before BPS: $7.58 Million
After BPS: $5.3 Million

Cost Savings:
$2.28 Million

30% Annual Savings

NEED HELP?

Contact Benefits Planning Service today for assistance on fully insured and self-funded plans as well as ACA compliance issues. We are here to serve you.

Contact Us

Benefits Planning Service
1200 Quail Street, Suite 105
Newport Beach, CA 92660

Phone: (800) 916-2012
Fax: (949) 833-3206

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