WHY SELF-FUND

Employers Can Control Healthcare Costs by Sharing Risk

The Brutal Reality of Healthcare in America

America’s healthcare system is in crisis. The cost of healthcare has become unsustainable – and the problem is only getting worse. Healthcare is now a top business expense, second only to payroll. In the last decade alone, it has increased a whopping 150%, according to a Mercer survey. Worse, the cost of healthcare is projected to DOUBLE in the next 4 years. Employers are at a crossroads – many worry if they can continue without being forced to layoff staff. It’s not just employers who pay more – your employees pay more too. And that means increased employee dissatisfaction and higher turnover, as employee raises get eaten up by higher insurance costs.

You pay more – but you’re satisfied less.

What kind of a raw deal is that? Most employees are unhappy with their healthcare. In the last 10 years, employee contributions for family coverage have risen 40%. The average deductible is $3,700. About 40% of employees can’t afford a $400 unexpected business expense.

Employees are frustrated:

There’s a disconnect between cost and quality.
They have no easy way to find the best doctors and hospitals.
The medical system is impossible to navigate.

Nobody’s happy – everyone’s concerned.

Better Benefits Make Happy Employees Who Stay and Succeed

Employees who are satisfied with their healthcare are twice as likely to stay on the team. 81% of employees who are satisfied with their healthcare say they’ll stay, compared to 43% of employees generally, according to a 2022 LIMRA BEAT survey. Employee turnover costs American businesses $1 trillion every year.

Great healthcare improves retention and lowers employee turnover, saving company hundreds of thousands of dollars every year.

So, why aren’t we doing anything about it?

Many employers feel stuck.

WHY SELF-FUND

The Brutal Reality of Healthcare in America

So, why aren’t we doing anything about it?

The system seems too complex.

Companies lack data to compare options.

There is a deliberate lack of transparency.

Employers are forced to focus on the short-term crisis.

Small to midsize firms feel they lack scale or the power to negotiate.

Misaligned incentives – traditional insurance companies increase costs to increase profit, at your expense.

Traditional insurance companies don’t represent employers’ best interests.

Worse, the system doesn’t want you to change.

The Solution: Employers Can Control Healthcare Costs by Sharing Risk

Instead of the old model:

Employers can opt for a new and better alternative: Self-Funding in a Group Medical Captive:

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