PARTIAL SELF FUNDING

Many difficult challenges lie ahead for employers. One challenge is to provide quality Health Care benefits at an affordable price, with predictable inflation trends.

• Medical care costs have increased faster than the general cost of living, due to technological advances and consumer demands.
• Federal and state governments have limited benefits paid under Medicare and Medicaid, shifting billions of dollars in risks and exposure from the public and private sector.
• Because of the Baby Boom of the 1940s and early 1950s, the U.S. workforce is aging, which results in higher utilization of health care. This trend is not expected to level off in the near future.
• Federal and state mandates for group health policies causes higher utilization and increased premiums.

When these and other factors are considered, it's no wonder that some insurance companies have completely exited the health insurance market, while others have increased rates at an unbelievable rate. These, coupled with other factors, are forcing employers to search for ways to reduce costs and improve available cash flow.

ONE ANSWER -- SELF FUNDING

A well thought out and designed partially self-funded program offers the best solution for financing and managing an employee health care program. With known scheduled stops in place, called Stop Loss. The client can accurately predict the worst case in any one year.