Health plan claims data – when you can get it – consistently shows that eight out of ten people spend less than $1,500 a year on their care. However, premiums per covered employee average $9,500.
That’s quite a spread.
Here are some related statistics. In Wisconsin, about 35% of the health care marketplace is selffunded; 30 % are covered by public programs (Medicare/Medicaid/HIRSP); just 29% have ‘traditional’ insured plans; and, 6% are uninsured.
Apparently, a great many employers want a chance at retaining any unused premium dollars of a fully insured plan. And they at least want to see where their money is going. These are just two of the advantages of (partially) self‐funding.
Innovative new products now make this viable for businesses with as few as 25 covered lives.