Insurance self-insured person 2024
For many employees, the end of calendar year 2023 means reviewing plan documents and making any necessary changes for the new year. It is also a time for benefit renewals and the start of open enrollment, with coverage beginning January 1.
This is an important year for many benefits plans because health care costs are increasing at their fastest pace in years. A recent Wall Street Journal article quotes a chief actuary for Aon who expects the average premium increase to be 8.5% next year, nearly double this year’s rate. Higher prices account for most of the increase, but there are other reasons as well.
Cost pressures are driving more small and mid-sized employers to consider switching from fully insured to self-insured health plans. In addition to lower rates, some of the ACA requirements (such as three-to-one premium limits limiting how much older enrollees pay versus younger ones) don’t apply to self-insured plans.
A self-insured plan is an arrangement in which an employer assumes financial responsibility for paying the cost of health claims and contracts with a third party administrator to handle claims administration. Often, self-insured employers purchase stop loss insurance to protect themselves from high costs in the event of an unexpectedly expensive year.
Penn State’s move to self-insurance for 2023 resulted in significant savings and allowed us to maintain the current level of employee health plan contributions, while minimizing the 2024 increase. This approach will continue to allow the University to provide high-quality, affordable medical, dental, vision and prescription drug coverage.
The University is partnering with Amwell, a virtual service offered through Highmark that offers employees 24/7 access to health and wellness resources, including telehealth appointments with qualified providers and nurse coaches. In addition to offering a wide variety of clinical services, Amwell has an online tool that allows employees to track their own health and wellness progress and earn rewards for their efforts.
With the end of open enrollment approaching, employees can use this resource to compare plans to make an informed decision prior to the December 15 deadline. Using the tool, employees can review their current health plan coverage against other options in Workday and choose a plan that best meets their needs and budget.
The University continues to offer a flexible benefits package, with employees eligible to contribute up to $200,000 per year toward their health care costs. In addition to the medical and pharmacy plans, the University provides flexible spending accounts and a wellness incentive program. Learn more about the University’s benefits offerings by visiting our website.Осигуровки самоосигуряващо се лице 2024