Written by: Mike Alexander, Jr. ABM Insurance & Benefit Services, Inc. 08/05/2021
Health insurance experts are predicting increases of 7% – 10% in 2022. With these worrying numbers, individuals and employers are seeking alternative options for providing employee benefits. Alternative funding, level funding, and patient physician coops are proving to be viable solutions to hyper-inflated medical insurance costs.
Alternative Funding
When an employer funds their own company’s employee benefits, it is referred to as alternative funding. Several health insurance providers offer this option, and it can be a great choice for companies as small as 50 employees to major corporations. In alternative funding, the employer takes the risk of funding expensive medical procedures, but can reap all the benefits if savings can be found. Plus, the employer will receive data on the medical care their employees need, allowing them to adjust plans to cut out unnecessary coverage and personalize health care for their company.
Level Funding
Level funding works much in the same way as alternative funding, with the main difference being permanent, set premiums that allow the employer to have more consistency in the costs accrued each month. This negates the risk of sudden high costs, as anything over the claims amount will be covered by stop-loss insurance. While the potential benefit cost savings are not as high as with alternative funding, level funding will prevent any unexpected costs.
Patient Physician Cooperatives
Unlike with alternative and level funding, patient physician cooperatives (Click For More Info) (otherwise known as PPCs) don’t typically work with a health insurance company. Rather, the doctors own the insurance, and the premium payments made by patients go directly to the medical practice. This option gives employers an opportunity to save on employee benefits by cutting out the middleman, and by allowing employees to shoulder a larger portion of the cost without forcing them to pay expensive premiums. Rather, they typically only need to pay a co-pay for each visit, with only emergency visits costing a hefty amount. If you’re able to find a PPC in your area, this might be the option for you.
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Whether your business has still got that small, homey feel with only a handful of employees, or if it’s big enough to span across the country, you can benefit from these alternatives to the typical health insurance plan. Your bottom line and your employees’ physical health will thank you.
Want More Information for your Employee Benefits or Individual coverage, call us at 800-362-2809