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More Small, Midsized Firms Choose To Pay Workers’ Medical Costs Directly - Kaiser

Aug 16, 2016

Kaiser Health News has released an article by Michelle Andrews, discussing the trend of self-funding among smaller organizations. "Instead of buying a health insurance policy to cover their workers, a growing number of small and midsized companies are opting to pay their employees’ medical claims directly."Read the full article at: khn.org

According to the article, despite some financial risk and the need for stop-loss insurance, "the proportion of midsized companies with 100 to 499 employees that were self-insured increased 19 percent, to 30.1 percent...the percentage of small firms with fewer than 100 employees that self-funded their health plans grew 7 percent, to 14.2 percent."

Thanks to the evolution of healthcare under the ACA, small-to-midsize businesses can now experience both organizational and employee benefits from self-funding and partial self-funding. To learn more, download our Quick Guide to 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. This communication does not constitute a legal opinion and should not be relied upon for any purpose other than its intended educational purpose.

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