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Published byPoppy Booth Modified over 9 years ago
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Allied™ Funding Advantage How Alternative Funding Works
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Does your group want to receive a refund for being healthy? YES! Alternative Funding is the answer!
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Fully Insured Risk Bearer is the Insurance Company Premium covers all risks, costs and administration Self Insured Risk Bearer is the Employer Claims are paid from Employer funds Employer pays for claims administration
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Also called Partial Self-Funding Employer is still the risk bearer Employer purchases Stop Loss Insurance to protect against high claims
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Specific Stop Loss Claims paid by carrier when an individual’s claims exceed a set dollar amount Aggregate Stop Loss Claims paid by carrier when the group’s total claims exceed a set dollar amount Employer’s risk minimized
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55% of all companies are fully or partially self funded Only 13% of employers with 200 or less employees are self or partially funded Savings Chance for employers to save and take control of their health plan Now available for smaller employers
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An alternative funding plan for groups of 10 to 99 Limits employer risk from self-funding Allows employer to save significant dollars Monthly costs may be less than fully-insured premiums Potential for refunds at end of plan year The only risk is not getting a refund at the end of the year!
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Monthly Costs Employer makes monthly contributions for each of these three items:
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Stop Loss Insurance Covers both Specific and Aggregate Coverage Costs vary with plan benefits selected Funding Advantage has set levels for Specific & Aggregate insurance to keep the plan simple. Admin & Sales Allied administration, claims paying and reporting expenses Broker or Benefit Consultant Compensation
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Claim Fund – Employer’s Money Employer contributions used to fund expected claim costs MAX funded plan Employer pays MAXIMUM claim costs for the year Monthly contributions are 1/12 of this annual cost each month MAX funded - Employer will NEVER be charged more than this for claims – even in a bad year Claims Fund money left over is the employer’s!
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Claim Fund Questions Accommodation When claims exceed money in claim fund – Insurer loans employer money. Since plan is max funded - regular monthly contributions will pay off the accommodation loan Reporting Detailed monthly reporting showing claim fund activity Plan Year and Claims Run Out Plan year is 12 months Claims incurred during plan year are payable for 9 months past end of plan year At end of the 9-month run-out – all remaining claims funds belong to employer! No hidden terminal liability costs Funding Advantage Monthly Costs
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ERISA plan is the plan of benefits for the employee Funding Advantage Options Premium Advantage Plans Traditional PPO HSA Qualified Plans Indemnity Freedom Plans No networks – no penalties True freedom of provider choice No balance billing
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Advantages for Employer Limits the risk of self funding Lowers monthly costs Healthy groups can receive LARGE refunds Won’t be subject to the ObamaCare “rate shocks” that will happen in 2014 Take control of health plan usage and costs
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www.alliednational.com The RIGHT Benefits. The RIGHT Price. GET YOUR ADVANTAGE TODAY!
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