Reporting is an increasing burden for all plans. Our Actuaries can help with the required reporting.
Reporting is an increasing burden for all plans. Self funded plans have obligations for producing IBNR estimates for finance, COBRA rates for employee notices, trusts, VEBA’s, government plans and others need calculations created, or at a minimum endorsed by a member of the American Academy of Actuaries.
“Statement 45 was issued to provide more complete, reliable, and decision-useful financial reporting regarding the costs and financial obligations that governments incur when they provide postemployment benefits other than pensions (OPEB) as part of the compensation for services rendered by their employees. Postemployment healthcare benefits, the most common form of OPEB, are a very significant financial commitment for many governments.” (GASB)
IBNR – “Incurred but not reported.” reflects the total amount owed by the insurer (self funded plan) to all valid claimants who have had a covered loss but have not yet reported it. Since the insurer (or employer) knows neither how many of these losses (the frequency) have occurred, nor the severity of each loss, IBNR is necessarily an estimate. The quality of this estimation is often used as a tool in assessing financials. Our actuaries establish and evaluate unpaid loss reserves using recognized standard actuarial loss development methods and techniques.
Self funding turns your business into an insurance company. Before making this move you must prepare an analysis without influence from the sales process. Beware of anyone who says you will save money. Call us, put our independence to work.
Self funding has become a popular recommendation.
Self funding is being recommended for groups down to 25 employees – don’t go out of business because you didn’t get a second opinion first.
Self funding is about risk, your company, or client, acts as the insurance company. Know before you recommend or choose self funding if your plan is predisposed to known risks. Risk factors used to predict rates by actuaries and underwriters can be used by our team to predict the suitability for self funding, consider these risk factors before making this recommendation to your client or in the case of an HR or finance executive, to your boss.
Did you know, according to Kaiser/HRET Survey of Employer-Sponsored Health Benefits, 2013, the difference between self funding and fully insured is less than 1%?
Our team of underwriters and actuaries were all former insurance insiders and made a living making money for insurance companies, they know group risk and fee dynamics and will provide valuable insight to you.
A second opinion is never a bad idea, you can’t go wrong recommending a trusted second opinion. Everyone involved will sleep better.
Employer plan sponsors who use HRA accounts or wrapping programs must certify the plans actuarial value by using the IRS calculator, and in cases where the calculator doesn’t fit, an Actuary must certify.
Certify your plans actuarial value
Some plan designs do not fit neatly into a predetermined AV, you will need an actuary to calculate an accurate actuarial value used to report to employees. The actuarial calculator for ACA does not take into account every unique plan design circumstance. In this case, hand calculated AV will bridge the gap. This is an affordable endeavor that permits plans to continue to be creative in plan design options.
For instance, plan design teams are focused on including a 60% AV to meet company cost objectives. Confirming, or working with us, will optimize plan designs for both the employer cost equation and employee value.