Self-Funded Health Insurance Plans May Lower Employer Costs By Joseph E. Fiegoli

As opposed to paying a monthly premium to an insurance company many companies choose to control their own destiny by self-insuring their health plan, typically employing an Executive Third Party Administrator to administer their health plan on a daily basis. Utilizing a Preferred Provider Organization (PPO) typically reduces medical costs and gives the member a greater flexibility and is more beneficial to those with complicated medical needs.

While self insurance isn’t appropriate for every organization, self-insured companies enjoy benefits over those with traditional insurance, and can see overall cost reductions of 10 percent or more. The company controls the level of reserves provided to pay its employees’ claims, and has the ability to retain any remaining amounts at the end of the year. Self-insured companies control any catastrophic losses by the purchasing of a stop loss insurance policy which protects the plan.

About Joseph Fiegoli:
Joe Fiegoli is an insurance professional with over 40 years of experience and is the President of National Health Administrators, Inc., a Third Party Administrator for self-funded insurance plans, based in Peekskill, New York.

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