This article by Paul Johnson for Benefit News takes a basic look at why self-funding is a good option for small- to mid-sized businesses, and can help them stay competitive against larger organizations.
Read the full original article from Employee Benefit News.
"Small- and mid-sized companies using traditional major medical plans are at a competitive disadvantage: either they are paying more in loaded costs than competitors that use smarter healthcare options, or they are finding it more difficult to hire employees because their competitors offer better plans."
Self-funded and partially self-funded plans offer more customization, flexibility, and cost-savings while still improving the quality of benefits offered. Since high quality benefits packages are a major factor in employees' decisions to work for or stay with an organization, especially with nonprofits who can't offer a competitive salary alone, it is essential that smaller organizations explore better options for delivering healthcare benefits.
Learn more about the importance of healthcare benefits in
recruitment and retention for nonprofits in our whitepaper,
Using Employee Healthcare to Retain and Recruit Top Talent:
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