Employers these days are looking at ways to control health care costs. They hear that health care is an important benefit to their employees, but face the task of figuring out how to offer the benefit without exposing themselves to claims that could destroy their bottom lines or even their companies.
So it would seem counterintuitive for employers—especially small to mid-size organizations—to assume more risk in today’s marketplace. But that’s exactly what’s happening thanks to self-funding, or self-insurance.
Unsurprisingly, the Patient Protection and Affordable Care Act of 2010 has played a major role in self-funding’s growth.
In addition to information gleaned from a health-risk assessment, employers will be able to obtain information that can help them make decisions on where to best allocate their resources in real-time.
And more information means better business decisions.