Employers Take Control of Medical Costs
With Self-Funded Health Plans
Nov. 16, 2016 (Ocoee, Fla.) – Healthcare cost control and risk management are critical reasons why Crowne Consulting Group and its benefits-planning partners are helping employers to self-fund their health plans.
While Crowne’s solutions have supported corporations, school districts, sheriff’s offices, and municipalities spanning Florida, the self-funding trend is spreading nationwide. Employee Benefit Research Institute (EBRI), a Washington, D.C.-based nonprofit, published a July report on trends in self-insured health plans between 1996 and 2015. A rise from 28.5 to 39 percent was reported for private employers offering self-funded plans.
For decades, a majority of large employers and government agencies have benefited from self-funded plans, but EBRI’s report notes an increasing percentage of small and mid-sized businesses self-funding. Additionally, October’s Market Realities report by Willis Towers Watson forecasts lower rate increases for self-insured plans compared to fully insured plans in 2017.
“Whether a decision to self-fund is for lowering insurance expenses or for managing government provisions, employers are achieving greater control of costs,” said Ray Tomlinson, president of Crowne Consulting Group, which is aligned with partners offering special programs with rate-caps from one of the nation’s largest stop-loss carriers for those risks who qualify. “Reinsurance or external insurance for catastrophic events is essential in managing long-term risk and avoiding losses through high-cost claims.”
Crowne and its partners are also helping self-funded employers mitigate risks and lower expenses through the operation of onsite and near-site health and wellness centers. In contrast to the typically expensive fee-for-service model of filing insurance claims, a self-funded employer can launch an onsite-care model and pay significantly less for medical services for employees, retirees, and their dependents. No-cost primary and chronic care, screenings, x-rays, wellness programs, and onsite pharmacies are among the benefits to patients of worksite healthcare.
About Crowne Consulting Group: Crowne Consulting Group, Inc., founded in 1986, provides administrative oversight services for worksite health and wellness centers and is a related company with The Crowne Group, an employee benefits consulting firm specializing in employer solutions and personal lines of insurance. Crowne serves public sector employers such as school boards, city and county government, sheriff offices, as well as private organizations. Solutions for consumer-driven plans include health reimbursement arrangements, self-funded plans, onsite health centers, as well as risk management and human resources consulting.