While Self-Funded insurance plans may appear to be an enticing alternative to rising premium prices, businesses need to be cautious when determining if such plans are right for them. Hundreds of business in Riverside, Orange, Los Angeles, San Bernardino and San Diego Counties and other California cities have turned to Health Trends for advice when determining the health care insurance plans that is best suited for their situation.

With Self-Funded plans, employers pay health care claims incurred by employees and their dependents, and purchase stop-loss insurance to cover claims that exceed a certain amount. Self-Funded plans differ from commercial insurance in that employers don't pay monthly premiums for care employees might receive; they pay only to cover the care employees actually receive.

Some large firms simply pay all employee health-care claims out of pocket, but most self-insurers budget costs based on past claims and buy indemnity insurance to limit exposure above that amount. These indemnity policies, called stop-loss or reinsurance, protect against higher-than-predicted individual claims and catastrophic group expenses.

Employee benefits are an important factor to any business in hiring and retaining a good work force. Contact our Corona office today and lets us help you evaluate if a Self-Funded plan is the right option for your business.