February 22, 2012
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?
Group Insurance - IMA603.jpg
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
                 Miscellaneous - Cost Drivers2