- How it works

For Groups of 10 - 100 covered employees

Flexibility in Managing Risk

1. This plan involves two premium components - one to the insurance carrier and one to a Member Funded Account. It allows for variable employee contribution plans.

2. Members establish the level of risk to assume (self insured premium amount - for example $1,500 per year per employee). Member Fund Accounts pay out benefits up to this increased deductible amount through a Third Party Administrator. Claims above that amount are then covered by the major insurance carrier.

3. Not every employee reaches this increased deductible amount. This generates residual Member Account funds that can be used to pay for future premiums or more benefits - not insurance company profits! These residuals belong to the employer.

4. The result is long term cost management.