Over the past ten years a number of large insurance companies have offered prepackaged self-funded and partially self-funded plans. The problem with many of these plans is that the insurance company owns all of the component parts. In our experience, a few of these insurance companies have not accurately reported claims, reserves or fixed costs in an attempt to avoid competition. This approach not only misleads the client but it places them at greater financial risk when trying to terminate coverage. Employers have also experienced high surcharges and terminal liability costs when leaving one insurance company for another.

In addition to reporting, service, and financial concerns, employers have been saddled with the responsibility of covering the individual profit objectives of each subordinate company in the captive environment. The Employers Advantage product was built utilizing the strongest independent vendors that had to compete based on measurable healthcare outcomes and lowest possible costs. The result is a fully integrated partially self-funded health plan whose fixed costs are 35%-50% lower than the major insurance companies.