Why Fully Insured Plans Only Benefit Carriers

The fully insured health plan model hasn’t been working very well for employers or employees. Premiums keep going up, but benefits stay the same. Carriers have the data to help reduce employers costs — they just don’t have the incentive. 

Fed-up employers are starting to see the benefits of self-funding an insurance plan for their workers. More and more employees, even those who work at small firms, are being covered by a self-funded plan — from 61% of all covered workers in 2019, according to Kaiser Family Foundation, to 67% last year — even with the myths and misconceptions that might scare them away. Each employer has to weigh the decision to self-fund a healthcare plan for themselves, but what they think they know is likely wrong. 

Advisors are a critical first step for employers who are ready to take the plunge. They provide the education and the assurance that life can be better  Self-funding doesn’t mean employers are alone. Advisors are key team members who bring together vendors, administrators and insurers to build a plan that meets the employers’ needs.

Employers who are ready to take back control of their healthcare spend have an alternative to traditional health plans in self-funding. They just need the courage to take the first step.