Firms that opt to self-insure [health benefits] can avoid the double-digit premium increases that plague conventional insurance -- and regain control over their health benefits.
Bethesda, MD (PRWEB) May 11, 2011
Self-insurance is the most cost-effective way for employers to provide health benefits, according to a new white paper from the Healthcare Performance Management Institute.
"Many companies have to deal with insurance premiums that rise 9 to 10 percent a year," said George Pantos, Executive Director of Bethesda, Md.-based Healthcare Performance Management Institute. "But firms that opt to self-insure [health benefits] can avoid the double-digit premium increases that plague conventional insurance -- and regain control over their health benefits."
Self-insured plans are exempt from state insurance mandates and premium taxes. These exemptions allow employers to customize their health plans for the specific needs of their workforces and devote more money to providing actual benefits. Self-insurance can be even more effective when combined with Healthcare Performance Management (HPM), a technology-driven business strategy that allows executives to measure the performance of their health plans, manage health risks -- and save money.
"Executives are chiefly concerned with three things: governing their organizations effectively, managing risk, and complying with the law," said Pantos. "Self-insurance and HPM can support all three missions."
Health benefits represent the second- or third-largest line item in most companies' budgets. Without exerting control over them, effective corporate governance -- not to mention risk management -- is impossible. By empowering companies to save money and preserve human capital assets, self-insurance and HPM can aid firms with their governance and risk-management obligations.
"Today's healthcare marketplace is more complicated than ever for American business," said Pantos. "Self-insurance, when employed in conjunction with HPM, can offer companies more control over their operations. That's key to preserving their bottom lines."
To download "Governance, Risk and Compliance Management Strategies for Self-Insured Health Plans," please visit http://www.hpminstitute.org/content/governance-risk-and-compliance-management-strategies-self-insured-health-plans.
Please contact Robby Schrum for more information at rschrum(at)hpminstitute(dot)org or 202-471-4228.
About the HPM Institute
The Healthcare Performance Management Institute (HPM Institute) is a research and education organization dedicated to promoting the use of business technology and management principles that deliver better and more cost-effective healthcare benefits for employers who cover their employees.
The Institute's mission is to introduce and develop a new corporate discipline called Healthcare Performance Management (HPM) -- a technology-enabled business strategy that tackles the challenge of controlling healthcare cost and quality in much the same way that enterprises have optimized customer relations, supply chain management and enterprise resource management. HPM provides C-level executives with visibility and control over company healthcare benefits spending trends and risk management postures, while protecting individual employee privacy.
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