Potential cost-savings benefits of a self-funded program
- Elimination of state premium tax
- Reduction in administration fees
- Elimination of reserve funds (now held by the employer’s plan)
Additional Potential benefits of a self-funded program
- Ability to select providers, procedures and processes suited to an organization’s regional needs.
- Employees are more engaged in cost management efforts since they typically share in the cost of caoverage (employee contributions, especially when they bear dependent premiums).
- Employee appreciation in the value of the plan is increased by more direct participation (dividend sharing, stabilizing premium potential) and a deeper understanding of their coverage.
Arrow’s internal team and strategic partners can help employers transition from a fully insured medical plan to a self-funded program.