Many organizations have discovered that self-insurance methods are a preferred way to provide their employees with outstanding healthcare coverage, as well as cost-effective options to meet all their insurance needs. Some of the benefits companies achieve with self-insurance include:
- An estimated 12% savings in first-year cash flow
- Elimination of most premium tax
- Lower cost of operations and vendor profit margin
- Control over plan design (e.g., avoiding state mandates)
- Return on investment (ROI) for reserves
- More targeted disease management that drives dollars directly to the bottom line.
Is Self-Insurance the Right Choice for Your Company?
Is self-insurance a feasible option for your organization? Risk Management Partners LLC (RMP) can help you answer that question by conducting a feasibility study that includes:
- Identifying the benefits and challenges of becoming a self-insured organization
- Conducting an in-depth financial analysis that compares the self-insured and traditional insurance options
- Determining the optimal level of risk that your organization should assume – a self-insured retention (SIR) analysis.
In addition, RMP can help you make the transition to self-insurance if your organization determines it’s both a feasible and preferred option.
If you’re wondering whether self-insurance is a cost-effective option for your organization’s healthcare, RMP can assist you in evaluating the situation.