I need medical and dental insurance for myself and kids.
Here is a not so shocking revelation, I have so many questions like what does full coverage insurance mean? Another – what is PPO insurance, what is hip insurance!
So many insurance questions and I have yet to understand how it works entirely. The kicker is, I just started this new job, and the company offers employees self-funded insurance health plans, yup! I was expecting commercial insurance like regular people, but I heard that it was costing companies a lot to buy into those insurance carriers. Looking at self-funded insurance sounds excellent.
I mean they accept financial responsibility for all insurance claims submitted by their employees but I am a little concerned how that type of insurance plan will work out for me.
I have had plenty of bad experiences when it comes to insurance from auto insurance, health insurance to life insurance.
Every insurance representative that approached me in the past contributed to all the financial debt that I now possess. I had to hire a lawyer to help me file bankruptcy, and I am shying away from that kind of insurance trauma. So I decided to do a little research on health insurance rules and health insurance waiting period when under the self-funded health insurance umbrella.
These are the pros listed here:
The company is able to tailor a health insurance plan designed to work best for their employees. Lower premium insurance payments for employees.
There are nil state insurance laws that mandate the company to participate in benefits that they do not need and that saves the company a lot of money.
Lower insurance costs to the employers and as a result employees reap the benefits along with their employers.
Self-funded insurance employers control their own reserves and can do what they want and when they want with their money. Now let me tell you the cons these will affect the company directly and the employees indirectly!
Hiring or having to do all the footwork that is usually done by insurance companies.
High risk- that means that health insurance claims have to be protected. The possibility of having more claims than initially budgeted for without a stop loss coverage plan.
Immediate profits for the insurance reserves won’t be instantaneous; it takes time to build that capital.
After I evaluated the pros and cons of the self-funded insurance plans read more here about it, I am on-board, because most of the risk falls on the employers and not the employees. So if you are like me just looking or rather hoping for comprehensive insurance coverage the self-funded insurance option seems a sure bet! I know that health insurance has such a stigma attached to it these days considering what is happening politically. Since at some point I want to make it into the small business owner realm and self insured health plans for small businesses seem like the more reasonable way to go. Except when that happens I will have to focus on the cons more than the pros because all of that insurance risk involved. Maybe I could beg the owner of nationwide insurance to guide me (laughs). Read more here.