Why do you shop at Costco? Simple, right? Because you know it will lower your costs.
It's the same reason employers self-fund their health insurance plan. But can you imagine going to Costco and the only thing you ever bought there was toilet paper? You would definitely save on that item...but in the grand scheme of things, it's not going materially impact your bottom line.
Think of self-funding like getting the Costco card and using it for one item. If self-funding is the only change you make, don't expect a big impact. You have to take advantage of the full flexibility it offers. At Costco, that could be groceries, tires, flooring, etc.
With self-funding, these 3 areas of flexibility unlock the power of self-funding:
1.) Plan Design
2.) Vendor Partners
3.) Financial Risk
Watch the video above to learn more about each.
Transcript
About the Author
Mike Kroupa, Self-Funding Insurance Expert
I grew up in a house that was constantly under construction and the experience helped me uncover one of my passions, remodeling. After running a successful remodeling business with my brother during college, I decided I wanted to keep this as a hobby. Instead, I took my advisor’s recommendation and started down the actuarial path, which ultimately led me to insurance.
Since then, I have focused my career teaching employers how to better manage their health insurance plans. I found myself frustrated year after year of doing the same thing because it didn’t feel like I was making an impact. Healthcare costs were continuing to increase, and it felt like the only options employers were left with was increasing deductibles, increasing contributions, and switching carriers.
There was a turning point for me in 2020 as I found Health Rosetta, an ecosystem for scaling adoption of practical fixes to our health care system. As my clients started adopting these fixes, I found myself getting passionate about what I was doing for the first time. Then I realized my hobby of remodeling was driving the passion because I was remodeling health plans. Even better, I was having an impact because patients (employees, spouses and children) were getting the best care they ever have and saving a lot of money in the process.
Get in contact with Mike:
Phone: 630.738.1835 Email: mkroupa@gocgo.com LinkedIn: Mike Kroupa