Why would your company consider self-insurance?
• Being self-insured allows you to create benefits that are more suited to your specific group of employees. You’ll have a better understanding of what you are paying for – in detail.
• Your benefits can be specific or general, and reporting on use can be as detailed as needed.
• You will be able to adapt quickly to the marketplace, economics and staffing, and make changes that reflect those needs with immediacy.
• Your benefits evolve as your company evolves.
The typical SB Howard client is a company of 150-plus employees and a human resource department continually saddled with the task of cutting health benefit costs. When CFOs realize, for example, that as a fully insured company they leave as much as $1 million on the table in three to five years, they often see how self-funded benefits can move them more adeptly into a secure future.
“Self-insurance is a risk, but it a risk that can be calculated,” says Leesa Davis, President and CEO of SB Howard & Company. For many CEOs, CFOs or HR Directors considering the self-insured approach, detailing the right solution requires getting down to the nitty-gritty of balancing risk with service.
“That’s often how the conversation begins,” Davis explains. “It’s their money. They want control over how it’s spent and how well it’s spent.”
The employee benefits solution doesn’t always have to be a decision of passing on costs or absorbing them. Self-insuring is a way for employers to have a great deal of flexibility and control at the same time.
What do other companies say about being Self-Insured?
