Throughout the year 2020 and now into 2021, many businesses big and small have been reevaluating their budgets. The times we’re in are unprecedented and saving on costs here and there can mean the difference between keeping or losing your employees. The force you have working for you is your business’s most valuable asset, so everything possible must be done to ensure you can keep your teams and keep them happy even in the toughest of times.
One area where many businesses are finding ways to save is through switching from a traditional to a self-funded healthcare plan. These group plans work similarly to traditional coverages, but they’re often far more affordable, customizable, and may even leave you with a little left over at the end of the year for reinvestment. Employees remain covered, while your business is able to free up the budget space needed to keep moving forward even in difficult times.
Why Make The Switch?
If your business has been working well with a traditional plan, you may consider looking elsewhere first before trying to save through a change in your group coverage. However, businesses can use this coverage just as easily while saving in the short-term and long-run. A few reasons to make the switch from a traditional plan to a self-funded plan are:
1. You’re keeping your employees covered – With a self-funded plan, you’re still able to keep your employees covered. They’ll be able to retain coverage for their needs and typically even their medical teams. In terms of using the plan, there isn’t too much difference between using a traditional plan and using a self-funded one.
2. Save on premiums through customization – Traditional plans will usually look at things traditionally. With a self-funded plan you’re better able to customize your coverage to suit the specific needs of your team and your budget. This can lead to greater premium savings as well as savings in the long-term.
3. Opportunity to reinvest – Unlike traditional plans, there is no administration to “keep” any unused funds left in your self-funded account at the end of the year. If the premiums placed into your claims account is greater than what was used throughout the year, your business may get this back in the form of a return. This return can be used to reinvest in your brand and keep you moving forward.
Friendly To Your Budget And Your Employees
If your business has been looking for ways to save budget space this year, considering the switch from a traditional plan to self-funded coverage can be just the difference you’re looking for. Employees retain quality coverage, but some of that weight is taken off of your brand’s shoulders during times of uncertainty. If you’re considering the switch to a self-funded plan, speaking to a professional agent can clear up any questions you may have. To learn more about self-funded healthcare coverage for your group, contact us at National Insurance Partners Inc. today.