Increasing healthcare costs, ACA compliance, balancing ever-precarious budgets, retaining valuable staff…midsize nonprofit organizations must consider many factors related to offering and managing group health coverage these days. More than ever, they need a better solution to the dilemma of providing mandated and high-quality employee healthcare while also watching the bottom line.
While in the past traditional fully-funded coverage provided by insurance carriers was the norm for midsize nonprofits, today there are more innovative options on the table. One such alternative is partial self-insurance, a blend of traditional fully-funded insurance and fully self-funded coverage. With partial self-insurance organizations purchase less expensive, high-deductible healthcare plans (HDHPs) for employees, and then provide a reserve account of supplementary funds to cover some or all out-of-pocket expenses.
While the financial and employee benefits are vast with typical partial self-insurance, there are also some challenges in the form of financial risk and management concerns. However, exploring partially self-funded plans and determining the level of risk is the first step for nonprofits towards achieving the delicate balance between balancing public needs with employee needs. This is especially true for midsize organizations that are struggling to withstand rapidly growing premiums and decreased benefits provided by traditional plans.
That said, traditional brokers may have goals and capabilities that are not aligned with the typical nonprofit. As such, it is worth seeking out alternative sources of information, such as non-traditional brokers who specialize in partial self-insurance and/or have experience with the independent sector.
Want more information? A full copy of The Nonprofit Executive’s Guide to Partial Self-Insurance can be downloaded here, and to learn about Nonstop’s unique approach to partial self-insurance, please contact us.
