Instant Insights / How the Coronavirus Affects HR, Benefits, and Retirement Professionals
Dealing with COVID-19's massive impact on employers, employee benefits, 401(k) and pension plans, health insurance, and more.
COVID-19 and self-funded plans: understanding the financial impact
As the COVID-19 pandemic continues to spread through the U.S., employers must be as mindful of the state of their self-funded health plan as they are the health of their employees. Here are key steps to ensure the plan’s financial viability during this crisis.
By Steve Purkapile, Terry Reams and Mark Guajardo|April 27, 2020 at 12:14 PM
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Benefits professionals are busy trying to keep numerous balls in the air now as you look to help ensure some stability for their people and organization during chaos of the COVID-19 pandemic. Here’s one ball their benefits advisor can ensure doesn’t fall out of place in protecting everyone over the long term: Assessing the potential cost impacts of the SARS-CoV-2 virus on their self-funded health plan, and taking steps to protect its financial viability.
Trying to project the financial impact of the coronavirus on a health plan is no small task given the number of variables in play, many of which are not under a plan sponsor’s control. If you’re in a densely populated region, for example, you could see a worrisome rise in infected plan members. The extent and duration of the spread and its impact on people would depend on how early and how long (if at all) a city or state authorities implement “shelter from home” policies.