Take the Guesswork Out of Managing Health Insurance Costs

In today’s economy, providing a health plan for one’s employees is part of doing business, and finding the right plan is critical. In fact, according to the Kaiser Family Foundation’s 2018 Employer Health Benefits Survey, 56 percent of small firms and 98 percent of large ones offer health benefits to at least a portion of their workers.

Many businesses are discovering a new way to manage their healthcare — by achieving affordability through predictability with a balanced funding health insurance solution. The option allows a business to pay a fixed amount each month.

Blue Cross Blue Shield of Arizona (BCBSAZ recently introduced its own balanced funding solution designed for self-funded businesses with 15 or more enrolled employees. Here are a few reasons for organizations to consider this solution:

It’s easier on the organization’s budget. A fixed monthly cost takes the guesswork out of budgeting. Businesses may find they qualify for a lower fixed monthly cost than what they are currently paying.

Small businesses can save big. A balanced funding plan could save a small business up to 30 percent more than an Affordable Care Act small group plan. 

It’s all-inclusive. The monthly payments cover everything — administrative services, stop-loss insurance and claims liability. 

There is potential for refunds. Under BCBSAZ’s plan, for instance, if annual claims are lower than expected, renewing businesses will receive 100 percent of the surplus. 

There are no surprises. Even if the organization’s annual claims end up being more than what it has paid, it won’t owe additional money.

Mike Tilton is general manager of Commercial Business at Blue Cross Blue Shield of Arizona.