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The number 1 thing you should do if you are a self-funded employer

Think about the last thing you did personally where you felt like the outcome was a success.

Maybe it was getting a great deal on a new car, asking for a raise, or DIY home remodeling project.

Do you know what all those have in common? They didn't happen overnight. They all required planning.

The same thing holds true when building a successful health insurance plan. And when you are self-funded, a huge pro is the number of things you can incorporate into this plan.

Learn more in the video above about what you can do to create a successful long-term strategy for your health insurance plan.

The other big pro of self-funding your health plan is you now have the ability to build a long-term strategy. No more thinking in one year decisions. Am I gonna shop carriers? Am I gonna have to increase deductibles and out-of-pocket maxes just to be able to absorb the increase that the insurance carrier passed on? Now you can think in multiple years, and one of the biggest things employers can take advantage of in this case is implementing different types of cost containment strategies year over year over year. A couple of examples of claims mitigation strategies might be around high cost prescription drugs, maybe sourcing those drugs from other countries for 40 to 50% of the cost of what it would be here in the United States. Maybe you implement some sort of mandatory second opinion program for one of the most expensive items that can hit a health plan like transplants. These are things that you don't have to do all at once, but you can look at your data and you can implement these over a long period of time and build it into a multi-year strategy. Data also becomes key when you as an employer are building a long-term strategy for your health plan. You're now gonna have access to David that you never even knew existed, and you can use this data to track the monthly performance of your plan, maybe make slight plan design tweaks each year. Maybe it's increasing a deductible, maybe it's actually decreasing a mental health copay because you want to remove a barrier to care that you're seeing in the data. Data is now gonna tell you a story, and as an employer, you can use that data to build, maintain, and fine tune a long-term strategy.

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

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