Is Self Funding right for you?
Self-funding is an effective method for taking control of health care expenditures and creating financial & operational efficiencies that benefit both the employer and its employees. These benefits require a long term commitment which, like any long term fiscal decision, requires a sound understanding of both the advantages and potential disadvantages. Dollar Based Dental has limited risk, unlike major medical plans which limits potential disadvantages to a known risk.
Is Level Funding right for you?
Level Funding offers many of the same benefits as Self Funding but it has the feel of a fully insured dental plan. You remit the payroll deductions to Eagles Dollar Based Dental and we cover any claims desparities. At the End of the plan year and runnout then you get a check for the surpluses from the plan.
Level Funded is an excelent choice for groups moving from a fully insured voluntary dental plan.
Advantages of Self Funding
- Overall Control
Complete flexibility of plan design, funding & reserve margins - Monetary
Money previously held in the form of reserves, incurred claims & reserve/claims profit margin is held in your accounts and earns interest for you - Reduction of Premium Tax
Self-funded plans are not subject to the premium taxes fully-insured plans pay - Elimination of State Mandated Benefits
State mandates are not enforced as plan is governed solely by ERISA - Administrative Efficiencies
By utilizing a Third Party Administrator eligibility, billing, claims payment & claims resolution is streamlined through one location. Client satisfaction is increased and plan performance is maximized - Reduced Operating Costs
Administrative fees incurred by TPAs are often lower than in fully-insured arrangements - Reporting
Accurate, detailed claims utilization reporting & analysis is available to self-funded plans that is not readily available to their fully-insured counterparts - Cost and Utilization Controls
The plan dictates how much or little medical management to incur within the plan
Advantages of Level Funded
- Overall Control
Complete flexibility of plan design. - Monetary
You pay only the payroll deductions on voluntary plans and you get a return of Surlpus at the End of the plan year and Run out. - Reduction of Premium Tax
Level funded plans are not subject to the premium taxes fully-insured plans pay - Elimination of State Mandated Benefits
State mandates are not enforced as plan is governed solely by ERISA - Administrative Efficiencies
By utilizing a Third Party Administrator eligibility, billing, claims payment & claims resolution is streamlined through one location. Client satisfaction is increased and plan performance is maximized - Reduced Operating Costs
Administrative fees incurred by TPAs are often lower than in fully-insured arrangements - Reporting
Accurate, detailed claims utilization reporting & analysis is available to self-funded plans that is not readily available to their fully-insured counterparts - Cost and Utilization Controls
The plan dictates how much or little medical management to incur within the plan