12/05/2013 (press release: Insurance4Dallas) // Dallas , Texas, USA // Rick Thornton
Insurance4Dallas is pleased to announce a product that will reduce costs for Small Businesses. This product, a Self-Funded Plan (SFP), is issued through the U.S. Department of Labor. As a result, these plans are not subject to all the mandates proposed by the Patient Protection Affordable Care Act or ACA for short, issued through the U.S. Department of Health and Human Services. Self-Funded plans have regularly been used by large companies, but now will be offered to companies with participating employee populations of five or more.
Self-Funded Plans can return money to the employer annually and premiums are typically less than ACA group monthly premium costs. SFPs however, are medically underwritten unlike ACA plans, which require no medical underwriting and are subject to insurance application criteria of age, zip code and tobacco use only. The Employers pay a premium as they would for a traditional plan, but incur no additional risk than they would if they bought an ACA product. Companies with healthy employees of five or more have a high probability of collecting a refund if few claims are received. A typically refund may be around $10K/year, depending on the company’s annual premium and the amount of money accumulated in the Claims fund at their renewal date. SFP’s monthly premiums are deposited into three buckets:
Bucket 1 is the Claims Fund. The Claims Fund may be thought of as a Savings Account. This money is accumulated via premium payments to the Third Party Administrator (TPA) and is returned to the employer if no claims exist beyond its accumulated value. The employer’s only risk is not getting this money back at the end of the year, which is included in the monthly payments. Monthly premiums are typically less than NON Self-Funded Plans.
Bucket 2 is the Stop Loss Insurance. This is the money given to the insurance carrier to pay claims that may occur and are greater than the money accumulated in the Claims Fund. In other words, as a concept, this could be considered your health insurance risk premium.
Bucket 3 is the Third Party Administrator. This is the company that manages the claims fund, manages claims, and accepts monthly premium along with all other administrative work pertaining to the policy.
To learn more about Self-Funded plans go to www.Insurance4Dallas.com/SFP
The Thornton Insurance Agency, which uses Insurance4Dallas.com (I4D) as its URL, is an online source of health insurance for individuals, families and small businesses. Insurance4Dallas removes the intricacy out of selecting medical insurance by providing data in an objective, easy to read format, enabling the research, analysis, comparison and purchase of health and life insurance products that best meet consumers’ needs.
Insurance4Dallas.com has developed partnerships with many of the major insurance carriers, offering competitive insurance products online. I4D has worked hard with insurance carriers to provide a seamless and secure connection electronically that gives us real time and direct connectivity to then Carrier’s application process. This decreases the time considerably for processing your insurance application.
Insurance4Dallas.com provides consumers with detailed information and the ability to apply for insurance online. I4D provides a full spectrum of health, life and dental insurance plans with a selection of price and benefit options, complemented by personable customer service. Available via phone, email or fax, Insurance4Dallas answers consumer questions throughout the process of purchasing and using health insurance.
The Thornton Insurance Agency was founded by John Thornton, who has been licensed and selling Insurance since 1986. He lends his expertise in the continued focus of customer satisfaction by becoming Texas’s number one online source for Life and Health Insurance. The Thornton Insurance Agency is headquartered in Lewisville, TX.