istorically self-funded health plans focused on the middle and large group market and are a funding mechanism used to more efficiently finance long term benefits cost. There have been a few small group models used over the years that worked quite well, however, that market never really became main-stream until the passage of the Affordable Care Act (ACA). With the passage of all the federal mandates and the increased cost shifting due to carrier losses on the exchanges, a sweet spot has been created for self funded Small Group Models. For a direct writing producer, or an association, that has control over a block of business and has ever considered creating his/her own white labeled small group consortium model, now might be the time. Here’s why…
Many companies’ rates have gone up significantly due solely to the changes in how fully insured rates are calculated (a narrowing of the rate bands). Every company has seen their rates go up because of the challenges associated with Specialty Drugs, mandatory “richening” of benefits and increased cost shifting. These increases, plus the changes in producer compensation paid by fully insured carriers, have created a tail-wind of support for self-funding like we’ve never had before. The fact is for a company with average to better than average health, there’s no better tool on the market than a self-funded plan. And with producers experiencing income erosion with the fully insured carriers, they have to show their clients all options, otherwise their competition will be happy to do it for them 🙂
“If you’re honest with yourself when you look into the mirror, are “you” part of the problem, or the solution? We can show you how to remove the conflicts of interest in the healthcare delivery model, and have a successful, rewarding career. All it takes is the courage to try! “
A well designed, white labeled small group consortium model creates momentum in a producer or association’s organization like few other things. Plus you can have a program customized for the tools and programs that offer the highest value to your clients. However, cost and speed to market has always been the largest barriers that have prevented many organizers from launching their own programs. But the market has continued to evolve and these barriers have become much less of an issue.
Producer revenue erosion has been a challenge for many. Many smaller brokerages have been bought out by the “big boys” much like large hospital systems have been purchasing outpatient treatment centers and physician offices. Rather than risk having to sell your business or merge with another entity, why not create your own program that offers your clients high value, and you the ability to better control your economic future. If you offer your clients premium products and services, word of mouth advertising still works and business will generally find you.
If you have control over 2-3K employee lives and want to explore having your own private label product, call today and let’s discuss designing your own Small Group Consortium program.