Take Control of Employee Benefits

What Are Self-funded Benefits?

Today more than 57% of companies in the United States self-fund benefits for their employees. Ideal for companies with a healthy workforce, self-funded benefits provide healthcare coverage to employees through a plan that you, the employer, manage, with healthcare claims paid through a fund that you create. Self-funded benefits are made possible through the Employee Retirement Income Security Act of 1974 (ERISA).

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Protect Your Business

Through your excess stop-loss policy, your Benefits Plan is protected from excessive losses due to employee medical claims, helping you maintain financial stability and greatly reduce risk to your business. It also helps you avoid government fines incurred for not providing employee medical care benefits.

Self-funded vs. Traditional—What’s the Difference?

Self-funded Employee benefits can be significantly more affordable than traditional, fully funded insurance. Here is how:

Joe’s Plumbing

With fullyfunded insurance, Joe’s company would pay a set amount in monthly premiums.  If his company experiences low claims cost during the program term, the insurance company would profit from his company’s good fortune.  He would not get to keep any of the money paid towards his Employee Benefits program.

With self-funded benefits, Joe becomes the benefit provider. He still pays a set amount each month, but he has the ability to retain his money that is not used to pay claims, at the end of the program term. Paramount Consulting Group provides all the tools and resources Joe needs in order for Joe to be in control of his benefits program, this allows Joe to keep all the cash that is left at the end of the program term becoming his  instead of the Insurance companies profit.

Employer Advantages

A self-funded healthcare benefits program lets you manage your employees’ benefits just as you manage your business. By providing self-funded benefits, you can achieve significant savings over paying for a fully funded insurance plan.

That’s because you, the employer, are in control—not an insurance company. Self-funded enables you to:

  • Choose the benefits that are affordable for you and your employees.
  • Make key decisions on benefits.
  • Excess stop-loss coverage pays for any eligable claim that exceeds your claims funds.
  • Maintain control of the money in your claims fund.
  • Retain the money in your claims fund if your claims do not exceed the balance in your fund.
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