The do-it-yourself advantage: self insurance, self administration yield savings in health benefit plan costs
Article Abstract:
The popularity of self-insured health plans among employers reflect the savings that such plans offer in health benefit plan costs. Some two-thirds of large employers are now self-insured, and smaller employers are also turning to this way of financing employee benefits. Self-insurance is available in several forms, including minimum premium, administrative services only, split-funded, claim service only, and high deductible. Costs of self-insured programs over the long term should be lower than traditional insurance premiums because there are no state premium taxes, plan designs can be flexible, cost controls can be effected, and cash flow is increased. Risks associated with self-insurance can be minimized through a well-built stop-loss program. The employer should produce timely, brief analytical management reports to understand and control plan operations.
Publication Name: Cashflow Magazine
Subject: Business
ISSN: 0196-6227
Year: 1988
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Flexible benefits: key to cost control
Article Abstract:
Flexible benefit plans are an effective cost control tool for employers that also can help the smaller firm compete successfully with larger companies in attracting and keeping high-quality employees. The flexible benefit plan allows employees to select among several fringe benefits such as health coverage, life insurance, dental coverage, and even cash. The plans are increasingly popular among both employers and employees, with the number of companies having 'flex' plans increasing from just eight in 1979 to over 525 in 1986. A phase-in approach is recommended for instituting flex plans. Pre-tax contributions, reimbursement accounts, and 'full' flex plans are described.
Publication Name: Cashflow Magazine
Subject: Business
ISSN: 0196-6227
Year: 1987
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Four reasons to rethink your retirement benefits
Article Abstract:
There are four factors which may lead a firm to review its retirement program: changed accounting rules, funded status of the plan, tax reform requirements, and a changing work force. It is important to consider all program aspects, including employee needs, as well as underlying financial and administrative commitments. The great majority of larger US employers utilize both a defined benefit pension plan and some kind of defined contribution arrangement, while mid-sized firms typically use just one kind.
Publication Name: Cashflow Magazine
Subject: Business
ISSN: 0196-6227
Year: 1987
User Contributions:
Comment about this article or add new information about this topic:
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