Small employers flocking to self-funding

From Employee Benefits Advisor:

Although self-insurance isn’t new — it began back in the 1970s with larger employers began exploring new ways to manage soaring healthcare costs — the movement has spread to mid-size employers steadily as costs continued to rise by double digits year after year. More recently, the passage of the Affordable Care Act gradually helped spread self-funding to small employers.

“The passage of the ACA had the indirect result of encouraging more employers to look at self-insurance,” says Michael Ferguson, president and CEO of Self Insurance Institute of America. “Generally speaking, we can say that the ACA has created increased pricing for mid-market employers and created uncertainty in the marketplace for employers who want to provide the benefit.”

Today, more than 90 million employees get health benefits through self-funded plans.

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Private Exchanges Debated; Fully Insured or Self-Funded?

Should large employers offering employee health plans through a private exchange be doing so on a self-funded or fully insured basis, or should they be bothering with this new concept at all?

According to an article in Health Insurance Exchange, that was a topic for discussion at the recent Self-Insurance Institute of America’s 33rd annual National Education Conference & Expo in Chicago.

Several industry representatives discussed the pros and cons of private exchange companies, whether benefits offered through these exchanges should be fully-insured or self funded and if the exchanges will save employers money in the long run. -See the full story at Health Insurance Exchange.