Health Care Funding for Mid Size Employers

Employers are struggling to find affordable financing alternatives for their company’s health care costs. In the small to mid size marketplace, limited options have left employers feeling as though there is no end in sight to annual rate increases. However, with an alternative approach to funding, businesses have the opportunity to gain control of health care costs — minimizing risk and maximizing potential savings.

With alternate funding comes comprehensive reporting. For the first time, business owners and managers will be able to see where every claim dollar is spent. Not only does that eliminate surprises throughout the year and at renewal, it also allows the executive to target specific areas within the health plan such as plan design selections and pharmacy utilization.

Rate increases for fully insured small group plans are higher than they have been in five years even though medical cost inflation rates have dropped into single digits. It seems unfair that premiums continue to increase even if employees and their families experienced no major health problems. The standard response to cries of unfair increases is typically centered on the excuse of “risk pooling” where healthy employees who actually use less in annual healthcare services help pay for unhealthy populations in other employer groups. With alternative funded healthcare plans, you only pay for the claims incurred by your group. Furthermore, your employees receive the same if not better coverage than they would from a fully insured plan.

Alternative funding isn’t for every business but every business owner owes to himself to at least explore and evaluate the concept. For additional information, contact Kirby Horton at 888-687-1973 extension 702 or email Kirby at