Myths About Self-Funded Health Plans
Why It’s the Right Choice for Your Company
It’s not uncommon to be overwhelmed in the search for a health plan administration solution for employees. One course that a business can take is to invest resources into a third-party administrator for a self-funded plan. This route offers advantages that can enable companies to set aside some cash and mitigate their risk with adequate support. Self-funded insurance additionally enables organizations to focus on their day to day operations without worrying about regulations and other aspects that the TPA would manage.
Sounds great, right? Nevertheless, there are still some business owners who harbor myths and misconceptions about self-funding and TPAs.
Myth No. 1: Self-Funding Will Ruin Small Businesses
Some entrepreneurs have heard stories about businesses failing after taking in the self-funding route. Essentially, a business would keep running into an extensive number of exorbitantly expensive cases after one or a few workers became extremely ill. Since they were self-funded, the business would hypothetically be stuck paying those bills with no assistance, which would compel them to close down.
While organizations in the ’70s and ’80s ran into this issue, circumstances are different. Organizations would now be able to put resources into something many refer to as top-loss insurance to manage their risk.
Myth No. 2: Self-Funding Has Too Many Moving Parts
While a few business owners might be wary of taking on all of the aspects involved in self-funding, there is an answer: a TPA. A TPA can oversee everything in-house. This allows the company to flourish without having to manage every single regulatory and administration need, such as:
- Having an in-house programmer who can receive necessary data files.
- Eligibility file management and reporting.
- Dealing with a pharmacy benefits manager, eligibility and drug costs.
- To name a few…
When you work with a TPA, you can concentrate on growing your business. For example: at PayerFusion Holdings, LLC we are prepared to meet your requirements on a global scale. From networks to cost containment, administration and specialty services, our innovative approach to the industry works. Let us know what you need, and we will work with you to provide the service our clients and partners expect from us. We enable you to remain compliant and competitive using our unique techniques and methodology for self-funded groups, programs, international insurers and more. We shift the paradigm and put you on the leading edge, worldwide.
Armando Antonio Diaz