Self-funded Plans

Companies of all sizes value the experience, objectivity and responsiveness of RD Parisi Associates. As an independent insurance agency, we provide and service a wide variety of insurance products. We're also knowledgeable about the latest healthcare reform changes, requirements and compliance issues, and exactly what they mean to your business.

Let RD Parisi Associates help you make sense of all the choices available, and select the most appropriate coverage for your employees…all at an affordable cost.

Small business and Individuals face many choices when deciding on the proper insurance needs. As a rule, you can purchase their insurance from one of two sources — a captive insurance agent who represents a single company, or an independent agent (sometimes called an insurance broker) who represents many different companies.

As an independent insurance agent, RD Parisi Associates believes in being an advocate for the needs of our clients. As such, we research each of the leading insurance companies to deliver a solution that fits our clients' needs as well as their budgets.

This is the first question that many small business owners ask their insurance agent or broker. The new health care reform law is very complex, and its impact on small businesses depends on the average number of full-time employees, average employee annual wages, and other factors. Some of the major provisions include:

• No lifetime limits on coverage — Insurance issuers may not establish lifetime limits on the dollar value of benefits. Prior to 2014, providers may impose a "restricted annual limit." The current annual limit minimum is $750,000. The annual limit minimum rose to $1.25 million on Sept. 23, 2011, and will increase to $2 million on Sept. 23, 2012. Annual limits on coverage will be prohibited beginning in 2014.
• An end to pre-existing conditions — Health insurers cannot deny children health insurance because of pre-existing conditions. A ban on discrimination against adults will take effect in 2014.
• Small business tax credits — Depending on the number of employees and average wage scale, your business could be eligible for tax credits up to 35 % of the company's share of healthcare costs.
• Expanded child coverage — Dependent coverage of children must be made available for an unmarried child until the child turns 26.
• No lifetime caps — Lifetime caps on the amount of insurance an individual can have will be banned. Annual caps will be limited and banned in 2014.

These are just a few ways in which small businesses, in general, will be affected by healthcare reform. For more information on the specific ramifications to your business, contact RD Parisi Associates.

Traditionally an option for businesses with 200+ employees, self-funding has increasingly become the program of choice for groups with as few as 25 employees. With rates increasing from 10-25% annually, there are now excellent plan management and cost containment options for smaller employers that in years past would not have been candidates for self-funded insurance plans. In addition to saving money on premiums, businesses can realize the following benefits:

• Option to maintain same benefit level for employees
• Multiple provider networks are available
• Built-in, seamless Flexible Spending Account administration
• Built-in COBRA Administration and compliance
• Full access to medical and prescription claims data, which allows for ongoing cost control based on claims history rather than pooled industry trends (a huge advantage for managing your costs)
• Control and choice covering state-mandated benefits
• Stop loss insurance which eliminates the risk traditionally associated with self-insuring