As small and midsize employers continue to struggle to manage ever-increasing health insurance costs, business owners are well advised to re-evaluate their plan designs. Since 2005, the average family’s premium has increased over 60%, and the upward trend will likely continue. Employers’ options are shifting more costs to workers, bearing the increasing costs themselves, or a mix of the two.
Faced with this challenge, midsized and smaller companies are increasingly looking to implement a partially or fully self-funded health plan. In a traditional medical plan insurance contract, the employer pays predetermined rates (premiums) to the insurance carrier, and in exchange, the
