Traditional Funding
Traditional financing for medical care, commonly known as a fully insured plan, is the type of financing most familiar to employers. This form of financing is particularly well suited to groups of less than 50 participants and in most cases, the method of choice for groups under 25. Ancillary coverages such as dental, long and short-term disability, and vision are best handled by this method ------ even for larger groups.
There are advantages to a fully insured plan. The obvious one is that the insurer assumes the risks associated with medical losses in exchange for a known premium that is usually, although not always, guaranteed for the policy year. Also, most administrative functions are performed by the insurer resulting in a convenient, turnkey approach to establish and maintain healthcare plans.
There are some disadvantages, however these typically are not outweighed by the advantages for groups of less than 50. The major downsides are the loss of benefit structure and financial control as well as the constraint of state regulation.
Midwest Benefits Group has extensive experience constructing benefit and financing arrangements utilizing fully insured products. As an independent broker, we work with multiple insurance companies, thereby providing our clients a comprehensive approach to a fully insured health plan.
Contact
Our offices are located in Chicago IL. However to ensure prompt service and reduce unsolicited spam email you should use the web form email method.If you would like to improve your current efforts to maintain an effective, yet cost contained employee benefits, then contact ....
Mark Singer at: (630) 416-6171