Companies are seeking better ways to 'self-fund' their health insurance to their employees. They are eliminating brokerage costs.
Let's face it, any employer that self-funds is guaranteed 15% over what is paid for the health cost of their employees.
15%. That is nothing to scoff at and they are quickly realizing 'self funding' is a good idea and provides for solvency of their company while providing vital care to their employees.
There is nothing "W"rong with that commerce. NOTHING.
Besides employers being able to tailor their heath insurance plans for their employees, the states still have rights. They will be able to conduct their own exchanges according to their own standards within the federal laws setting up minimum requirements. So the ideas the states are being removed from the process of taking care of their citizens is ridiculous. The State Exchanges will have more opportunity to provide for their citizens than ever before. The real role of the HSS Secretary is collecting data to assist in the improvement of our health care system to reduce costs while maintaining quality care. The federal government is not controlling the States in regard to their exchanges.
Besides employers being able to tailor their heath insurance plans for their employees, the states still have rights. They will be able to conduct their own exchanges according to their own standards within the federal laws setting up minimum requirements. So the ideas the states are being removed from the process of taking care of their citizens is ridiculous. The State Exchanges will have more opportunity to provide for their citizens than ever before. The real role of the HSS Secretary is collecting data to assist in the improvement of our health care system to reduce costs while maintaining quality care. The federal government is not controlling the States in regard to their exchanges.
...“The savings are greatest in states (click title to entry - thank you) with a lot of mandates, such as Washington, which has 40 coverage requirements for insured benefit plans,” said James Rivetts, president of insurance consultant JLR & Associates L.L.C. in North Bend, Wash. “If you go self-insured, you don't have to capitulate to those mandates.”
Another provision in PPACA that sets new minimum medical loss ratio requirements for insurers also is likely to drive more middle-market employers to self-funding, experts say, because it will shed light on how much brokers' commissions have been contributing to premium costs.
Beginning this year, insurers must spend at least 85% of every premium dollar collected from groups of 100 or more on medical care, leaving only 15% to cover their overhead costs, including broker commissions. In response, some insurers have ceased paying brokers commissions, forcing these intermediaries to seek compensation directly from insurance buyers. In some cases, brokers are offering to help employers transition to self-funding after their clients learn their brokers' compensation has been growing commensurate with their increasing premium charges....
