CLAIM DOLLARS

1. INSURED PLAN – You are paying for actual and anticipated claims in advance.
2. SELF INSURED PLAN – Claims are paid when filed by participants.
3. EFFECT – You retain the money until needed to pay claims.

INFLATIONARY COST

1. INSURED PLAN – You are pre-paying anticipated inflationary trends in advance.
2. SELF-INSURED PLAN – You pay for inflation only as it occurs – not in advance or as anticipated.
3. EFFECT – You retain the money until it is actually needed.

CLAIM RESERVES

1. INSURED PLAN – Your premium dollars are reserved based on industry averages or anticipated losses. The insurance company provides itself with an effective “hedge” to use both before and after your plan termination.
2. SELF-FUNDED PLAN – Funds needed to provide for accrued liability for claim run-off will develop through your self-funded Plan, just as under an insured Plan, should you terminate.
3. EFFECT – Your retain maximum use of your money until actually needed to pay.

STATE PREMIUM TAX

1. INSURED PLAN – A part of every dollar you pay in premiums goes to pay State taxes.
2. SELF-INSURED PLAN – No premium tax is required except on the nominal reinsurance premiums.
3. EFFECT – An immediate and effective savings to your program.

ADMINISTRATION EXPENSES

1. INSURED PLAN – Normally 10% to 15% of every dollar you pay in premiums is retained by the insurance company to cover administration. Your pay general overhead charged to all plans.
2. SELF-FUNDED PLAN – Administrative expenses normally are reduced by as much as 50%. You pay only those administrative costs attributable to you plan.
3. EFFECT – Lower cost to you.

PLAN DESIGN

1. INSURED PLAN – You have limited input into benefit design – “Take what we offer”. Any increase in benefits increases your direct cost, even if those benefits are not used.
2. SELF-INSURED PLAN – You provide exactly the benefits you desire. Select your benefits “a la carte”. You do not pay for increases in benefits until they are used.
3. EFFECT – Provides more comprehensive health care at lower cost to you.

ACCOUNTABILITY

1. INSURED PLAN – You have no idea of where your money is going.
2. SELF-FUNDING PLAN – You get a monthly report of how your money was spent.
3. EFFECT – Increased awareness of costs, allowing greater management control.

LARGE SINGLE CLAIM PROTECTION

1. INSURED PLAN – You are protected.
2. SELF FUNDED PLAN – You are protected through individual stop-loss insurance.
3. EFFECT – No loss of needed coverage.

OVER-ALL CLAIM PROTECTION

1. INSURED PLAN – You are protected.
2. SELF FUNDED PLAN – You are protected through aggregate stop-loss insurance.

6330 East 75th Street, Suite 106, Indianapolis, IN 46250
317-849-3282 * 800-382-5220 * Fax 317-849-3436