HOW DO DIFFERENT FINANCING OPTIONS COMPARE ?
| FULLY INSURED | SELF INSURED | HYBRID APPROACH | |
| GENERAL RISK | Low | Medium | Medium to High |
| COST TO EMPLOYER | Monthly Premiums | Monthly Contributions | Pro-Rated Installment |
| MONTHLY VARIABILITY | None, premiums are locked for the year | Possible increases based on accumulated risk factors | Predictable and consistent variability |
| FEWER CLAIMS THAN PROJECTED | NA | Contribution returns, minimum to no increase in future billing | Employer directly benefits from a ‘good’ year |
| CONVERSELY MORE CLAIMS THAN PROJECTED | Large increase at renewal, impacting all future plan years | Possible increase at renewal | Re-assess the pro-rated future billing installments |
ADDITIONAL BENEFITS TO HYBRID FUNDING
TRANSPARENCY
- Access to employee claims overview so you can gain insight into actual healthcare costs vs. the typical “trend” of insurance pooled premiums;
- Increased transparency and knowledge of health plan administration costs;
- Active engagement and better understanding of how medical usage impacts renewal premiums, allowing you to anticipate and/or reduce volatility in health insurance spending.
CONTROL
- The ability to customize your plan design to meet the specific healthcare needs of your workforce
- The opportunity to build material incentives & disincentives and wellness initiatives that have data driven potential to mitigate key cost drivers;
- The option to contract with the providers or provider network best suited to the healthcare needs of their employees