Thursday, October 2, 2014

ASHA Moves to Self-Insure Medical Coverage for N.O. Staff

Many employers move to self-insure the medical plans for their employees once they reach a certain size. With a large enough group, it becomes less expensive to pay the actual medical claims and an administrative fee than to pay premiums to an insurance company to assume the risks associated with fluctuations in claims. Self-insuring also allows an employer more flexibility in the plan design and allows an employer to avoid some of the taxes imposed on fully-insured plans. 

How a plan is funded is largely invisible to the staff. For example, ASHA has been self-insuring dental coverage for years and I doubt most staff have given it any thought. In 2015, staff will notice a few changes though. Our coverage will still be with UnitedHeathcare, but UMR (a different group within the company) will be handling our account. Therefore, we will all be issued new cards with new contact information. 

We'll be explaining all this and more during our open-enrollment meetings in November. Please plan to attend. As always, spouses are welcome. 


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