b'WPMA Associate News WMI WordcontinuedHR Question The TPA secures reinsurance on behalf of the plan and serves2023 WPMAEXPO Presidential Sponsor& Educational Session Presenteras liaison with the reinsurance company. Self-funding involves two main types of reinsurance: INTERNALvs EXTERNAL HIRING?(1) specific reinsurance which provides reinsuranceprotection on a per person basis; and(2) aggregate reinsurance which provides company- wide protection. The plan safeguards funds to pay claims and plan-related expenses.Who Should Consider SELF-FUNDING? Employers with 50 or more employees should consider self- funding (although some reinsurance companies will quote groups with as few as 15 employees). Employers with a healthy cash flow, strong balance sheet, andan adequate risk tolerance.Employers willing to take responsibility for their benefit offering. Employers with a stable employee base, better than aver- age claims experience, and few or no ongoing potential large claims. (Note: Examples of expensive medical conditions are kidney disease and dialysis, hemophilia, transplants, specialtyQuestiondrug treatments, and premature births). Employers who are committed to a long-term solution toWe had an employeeproviding affordable benefits. Self-funding is not something aleave employment in one company can approach impulsively or willy-nilly. Plans willdivision of our company, inevitably experience good and bad claim years; but overleaving the position va-time, self-funded plans will generally outperform fully-insuredcant. An employee from plans and will produce better results for the employers thatanother division showed sponsor them. For a company to reap the benefit of self-fund- interest in the vacant ing, it is essential that the employer remain on the self-funded platform even when claims experience is adverse.position and emailed the The Question of themanagers to request an Month is provided by What Information is Necessary Enquiron, a companyinterview. The two man-wholly independent fromagers had been planning to Get a Self-Funded QUOTE? Federated Insurance.to post the job externallyEmployer Data: Federated provides its clients access to thisand are thinking of not (1) name of employer and all subsidiaries to be covered; information through theconsidering the internal (2) location (zip code) of the employer and subsidiaries; Federated Employmentapplicant because her (3) current census (e.g., employee names, age, gender, Practices Network withwork status, and dependent coverage); and the understanding thatdepartment is short-neither Federated nor itsstaffed, and her managers (4) SIC code or industry type. employees provide legal or employment advice.are already really strug- Health Insurance History: As such, Federated does gling. Would there be any (1) employer coverage history (three years if available); not warrant the accuracy,discrimination issues with (2) prior/current insurance company information; adequacy, or completeness (3) prior/current insurance policy information (e.g., contract of the information herein.not considering thisThis information may beinternal candidate? type, benefit levels and schedule of benefits); subject to restrictions and (4) premium rate history; regulation in your state. (5) enrollment and census information; and Consult with your own (6) monthly claims history (if available). qualified legal counsel regarding your specific facts If you would like to visit about the possibility of self-fundingand circumstances.your companys health benefits (or even just dental and/or vision All rights reserved. benefits), please contact me. I would love an opportunity to seePublished Date:what WMI TPA might be able to do for you! S March 17, 202242 www.wpma.com / Summer 2022'