Your company may benefit from opting out of a traditional insurance plan in favor of self-insurance. Historically, only large corporations implemented their own insurance plans, but the potent combination of changes in health care regulations and rising premiums have enabled small to medium-sized businesses to take advantage of being self-insured.
Why do large corporations prefer to be self-insured? This question is especially relevant in the construction industry where workers face a higher probability of injury. In this article, our Bradenton construction lawyers will examine the legalities of self-insurance and how it can save you money and provide better coverage for your employees.
There are many reasons to self-insure your company, but one of the most logical reasons is to save money. According to the Self-Insurance Education Foundation, companies can save 10 to 25 percent on non-claims expenses by self-insuring. Employers can also eradicate costs for state insurance premium taxes. Plus, they aren’t legally obligated by the state to adhere to coverage requirements. Companies are freed up to design and implement effective health care packages that meet the needs of their employees.
Creating custom health care packages allows companies to allocate expenses to the areas of coverage that will best serve their employees. They can choose to include vision, dental, prescription, and workers’ compensation in addition to medical coverage, but they can toggle the levels of coverage so you don’t find yourself paying out of pocket for common procedures that aren’t covered by your insurance. If a company promotes wellness programs, they can reduce the number of annual claims while encouraging their workers to maintain a healthy lifestyle.
Customizing health care packages for employees can help cut costs while boosting coverage. If your workforce is comprised of young, healthy workers, you could consider increasing family planning coverage. On the other hand, a construction company might want to invest more money into chiropractic or acupuncture coverage to help with physical ailments.
Access to Claims Data
Self-insured companies have unrestricted access to their employees’ claims data. Claims data is unavailable through traditional health care programs, which makes a big difference for companies who want to tailor their insurance coverage to the needs of their workforce. Companies can forecast and plan health care expenses by studying their employees’ claims data and creating modified plans that best suit their current roster. Over the years, the accumulated data will help companies manage benefits and control costs. For construction professionals, this means generating historical data about worker health and safety that illustrates good and bad practices within your company over the years.
Our Bradenton contractor lawyers can help you determine whether or not self-insurance aligns with your legal interests and ensure that your coverage lawfully protects your employees.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.