Several studies show an increase in the number of companies choosing self-insurance as well as an expectation that this trend will continue.
“Between 2013 and 2015, the proportion of midsized companies with 100 to 499 employees that were self-insured increased 19%, to 30%. The percentage of small firms with fewer than 100 employees that self-funded their health plans grew 7%, to 14%.”
This increase was expected with the introduction of the Affordable Care Act. In some cases, the law proposed requirements on health plans that do not apply to self-funded plans, making it an appealing solution. To read more about the rewards and risks small to large sized businesses weigh when deciding to self-insure click here.
It also appears that this rise in self-funded health plans over fully insured is going to continue. According to the Benefits Strategy & Benchmarking Survey, “the trend of switching from fully insured to self-insured is expected to grow by 35% in the next two years, from 28% to 38%.” There are several factors driving this continued trend. Employers are searching for savings in a world where healthcare costs and specialty drug costs are rising out of control. And, the ability to have access to health plan data, and services like telemedicine are very valuable added benefits.
To read why more and more companies are expected to continue to choose self-funding click here.