For many years, large employers have financed their health insurance programs using the self-funded concept. This has proven to be the most cost-effective way to pay for healthcare costs while offering their employees a comprehensive benefit program. GBS has developed self-funded plans for business owners with under 100 employees so they can reap the benefits of this healthcare funding method with predictable risk.
Employers have the ability to choose from a variety of plan designs to customize the benefits to fit the needs of their employees. Employers are also able to choose a funding option and banking arrangement that best suits their budget and cash flow.
Self-funding is all about choice and flexibility. There are two types of self-funding arrangements - Level Funded and Traditional Funded.
Level Funded health plans, typically for 5-100 employees, allow employers to pay a preset level 4-tier premium equivalent which includes fixed costs and the maximum claims fund. Because the employer is pre-funding the claims, any unused claims fund at the end of the contract period will be returned to the employer as savings.
Traditional Funded health plans, typically for 100+ employees, give the employer cash flow flexibility since only fixed costs are invoiced monthly and claims are funded as they occur. Since the employer is not pre-funding their claims, they are retaining the savings throughout the year.
With both funding arrangements, employers get the benefit of an unbundled approach to designing their health plan. To support this approach, GBS partners with best-in-class stop-loss carriers, wellness providers, and PPO Provider Networks. GBS also helps employers reduce costs with our cost containment strategies.