Self-funded - Not Just for Large Groups Anymore

 

ServicesAn increasing number of industry experts have cited self-funded plans as an option small group employers should consider.

What Are Self-funded Plans?

Self-funded plans allow employers to fund medical claims incurred by employees. Employers may choose to partially self-fund if they work with a self-funded or stop-loss insurance administrator like ATA America. Listen to a webinar now » 

Why Should My Small Group Clients Consider Them?
* Greater control over plan design
* Increased cash flow
* Exempt from certain state mandated benefits.

How Do They Work?  Let's take a look:
ABC Company enrolls each of its 10 eligible employees in a $5,000 ATA America high-deductible insurance plan. The Company is liable for a total of $50,000 in medical claims ($5,000 per employee x 10 employees = $50,000).     

Best Case Scenario at Renewal: $30,000 in claims were incurred.  The employer saved $20,000.
Worst Case Scenario at Renewal: $70,000 in claims were incurred.  ATA paid the $20,000 excess loss and group receives a renewal increase.  

What Groups Should I Target?  According to ATA America, the following industries historically generate better-than-average loss experiences:   

SIC Range        General Description
 3612-3699        Electronic, Electrical Equipment & Components  
 3812-3873        Measure/Analyze/Control Instruments; Watches/Clocks 
 3911-3999        Miscellaneous Manufacturing Industries 
 4812-4899        Communications 
 6011-6099        Depository Institutions 
 6111-6163        Non-Depository Credit Institutions 
 6712-6799        Holding and Other Investment Offices 
 7371-7379        Computer Programming, Data Processing, and Other Computer Related 
 8711-8748        Engineering, Accounting, Research, Management & Related Services