Is it possible that the Cadillac Tax will be a major health spending cost ‘deflator’?
It was not long ago that self-funding medical insurance was considered a large employer concept. For understandable reasons, smaller and smaller employers have been considering and adopting this option in recent years.
If you’ve had questions and ideas like these pop into your head… “There is no way medical insurance should cost this much!”, “Why can’t I get the claims information that proves my company should be paying this much?”, “Why shouldn’t we retain the financial benefit in years when our employees are healthy and have low medical plan utilization?”, “What about all this additional fee and tax savings I hear about with self-funded medical?”…you should be interested in self-funding but be ahead of your peers in taking proper precautions.
Review this checklist of some things you should know before self-funding but, believe me, there are more! Don’t get wide-eyed when you see a medical insurance cost SLASHING quote! There is a lot more than meets the eye, even from those who tell you that individual and aggregate stop-loss coverage is the key to limiting your exposure.
I would add more to the list contained in the above referenced article including the implementation of wellness strategies, gathering employee population health aggregate data, learning more about claims reporting and reactive plan design modeling, and what it takes to get out of self-funding if isn’t right for you PRIOR to moving into a self-funded model.
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