It’s the season for mid-year healthcare plan renewals. As such, many organizations are likely re-examining their current healthcare plans (and possibly brokers) to determine if there’s any room for improvement and/or more savings. But while a large percentage of small-to-midsize nonprofits typically opt for traditional fully-funded employee healthcare, partially self-funded healthcare might actually be a better option.
A partially self-insured plan builds on already existing group health insurance. Organizations purchase less expensive, high-deductible healthcare plans (HDHPs) for employees, and then provide supplementary funds for all enrolled employees. These supplementary funds help pay for out-of-pocket expenses related to having a HDHP. Organizations only pay for the services employees use, which saves money, and in some cases remaining funds can be reinvested back into the business at the end of the year.
But how do you know if moving from a fully-funded insurance plan to a partially self-insured plan is the right move for your organization? Below are the top five things to consider as you re-evaluate your current health plan and look to the future:
Nonstop Wellness is one approach to partial self-funding that removes the financial and administrative barriers of self-funding, and allows for significant savings on premiums annually and improved employee benefits with zero out-of-pocket costs.
Learn more about partial self-insurance
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The information and materials herein are provided for general information purposes only and are not intended to constitute legal or other advice or opinions on any specific matters and are not intended to replace the advice of a qualified attorney, plan provider or other professional advisor. This information has been taken from sources believed to be reliable, but there is no guarantee as to its accuracy. In accordance with IRS Circular 230, this communication is not intended or written to be used, and cannot be used as or considered a ‘covered opinion’ or other written tax advice and should not be relied upon for any purpose other than its intended purpose