There are a few ways that employers can offer health insurance to their employees. Group benefit plans and self-insured health plans are two options. Using a company like IMS Insurance, businesses can meet the health insurance requirements and give their employees a valuable benefit.
Unlike a fully funded group plan, a self-insured plan requires the employer to carry the financial risk of the policy. A stop-loss insurance policy can help cover those unexpected catastrophic claims the employer must pay. The stop-loss policy can take on some of the financial risks of a self-funded plan.
Health insurance claims receive payments from a special trust the employer has set up strictly to pay for those services. The claims processing runs through a third-party administrator. The administrators may be in house or subcontracted. Either way, they fulfill the roles of a traditional insurer such as claim utilization review.
One reason many employers choose a self-funded health insurance plan is due to cost savings. The average cost per enrolled person is often less than traditional insurance plans. There are no sales pitches or discounts because the employer funds the plan.
Companies like IMS Insurance help employers have a self-insured health plan that meets their needs. Self-insured plans are not a right fit for every business.