ALTERNATIVE-FUNDING - The ROBBINS Group

ALTERNATIVE-FUNDING

A better way to provide healthcare...

WHAT IS ALTERNATIVE-FUNDING?

Alternative-Funding is a form of selffunding that functions very similarly to an insured policy where the employer pays a set monthly amount based on the claim level they have chosen to fund to. But unlike an insured policy, the employer shares in a portion of the unused claims funds, after claim payments and plan costs. This approach allows even small employers to establish a monthly health plan budget and take advantage of the economic benefits of self-funding that many large employers have enjoyed for years.

Employer pays a set amount each month during the twelve month plan year to fund the plan. The monthly payment is determined for each employer based on a thorough underwriting review and the claim funding level.
Employers can directly benefit from innovative plan design measures (reduced employer and employee costs), that large, self-funded employers currently utilize.
Unlike insurance, if claims do not exceed the amount funded by the employer, a portion of the unused claim funds are shared with the employer.

WHY SELF INSURE?

When employers choose to self insure, they have the ability for greater flexibility and cost savings. They now control a larger part of the dollars spent on health care because they pay the majority of their claims directly. As a result, if the employees are wise consumers of health care, the employer will have reduced costs over a fully insured plan.

COST DRIVERS EMPLOYERS CAN CONTROL