Why Would a Group Decide to Move From Fully Insured to Self-Funded?
Darren Harvey I Benefits Specialist at Capital Group Benefits
Guiding employers down the path to a benefits program that is pro employee and pro bottom line.
Why would a group decide to move from fully insured to self-funded and only receive 50% of their unused claims money when they could go self-funded and receive 100% of their unused claims money back?
Moving from Fully Insured to Level-Funded offers you the opportunity to receive 50% of your unused claims money back, however, you are financing the level-funded plan much like you already do in fully insured. You pay the entire premiums to the carrier on a monthly basis, you will only receive your portion of the unused claims money 6 months after your policy year has ended.
Moving to a Self-Insured Captive program allows you to keep all claims money in your bank account and only pay as claims occur. This is very important because at the end of your policy year you don’t wait for your unused claims money, and you do not have to share the unused claims money with the carrier.
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