Flexible, Integrated, Single Source Solutions
Adoption of self-insurance is increasing dramatically by employers of all sizes as they look for ways to reduce costs and risk, while providing competitive healthcare benefits that work long-term. Companies choose to self-insure to gain cost control and stability in health plan management, as well as benefit from the exemption of many costly healthcare reform requirements available under self-insured plans.
Among the benefits of self-insurance are:
- Enhanced cash flow.
- Lower cost of operation with Sterling as the administrator, versus working with an insurance carrier.
- Plan designs tailored to meet the company's needs and engage employees in healthy and cost conscious choices, adding to cost savings long-term.
- Exclusion from state mandates and many healthcare reform requirements. For example, self-insured plans are not required to provide coverage with minimum essential benefits and there are no maximum deductible limits.
Under a self-insured program, employers design a benefit plan to meet the unique needs of their employees. Employers use their own funds to pay claims as they are incurred instead of paying a fixed premium to an insurance carrier. Self-insured employers assume the risks associated with predictable claims costs like annual check-ups and routine medical needs. Unpredictable costs, such as shock claims or catastrophic losses, are generally covered under stop-loss contracts issued by an insurance carrier. Sterling SIA provides stop-loss protection for both small and large employer groups. We work with clients who have claims experience and those who don’t through our contracts with multiple "A" rated stop-loss carriers.
We offer two types of self-insurance programs - Sterling Level Funding and Sterling Traditional Self-Insurance. The right product choice depends on claims experience, stop loss underwriting guidelines, group size and demographics, and state regulations.
