Employer sponsored health plans should move far away from the traditional model, where insurers are in total control. Now is the time to consider a funding model which puts the employer in the driver’s seat and enables the employer to truly control their level of risk. For some employers, this means moving away from an “ASO” arrangement with a health insurance company. For those employers still using a fully insured plan, it’s time to consider self-funded, partial self-funded, or hybrid arrangements. There are many self-funded options available at this time which are designed to minimize exposure.
Outside of the small group market (2-100 employees), the only financial value health insurers currently provide is their network discounts. Employers should only lease a health insurer’s network. To have a health insurer do more than this today no longer makes financial sense and is not sustainable.