ALTERNATIVE FUNDING - The ROBBINS Group

ALTERNATIVE FUNDING

A better way to provide healthcare...

WHAT IS ALTERNATIVE FUNDING?

Alternative Funding is a form of self-funding 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