Until quite recently, self-funding was generally seen as an option only for relatively large employer groups. There have been exceptions, of course (the PACE program, for example), but those have been few and far between. With the advent of the ObamaTax, however, employers are looking at alternatives to help rein in costs and try to stay ahead of the health insurance curve.
Enter Aetna, which is making its foray into this space with “Aetna Funding Advantage,” available to groups with as few as 10 employees. Self-funding offers a number of advantages over more traditional, fully insured plans, not the least of which is exemption from a number of ObamaTax requirements (click here for a more detailed explication of how self-funded plans work).
Self-funded pans also offer the potential for significant cost savings over fully insured plans. There are also drawbacks, of course. One is that they’re a bit more complicated than “regular” group plans, although they’re not exactly rocket surgery, either.
In any case, expect to see other carriers launching their own versions as the ObamaTax continues to wreak its havoc.
