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http://img.en25.com/Web/CIGNACorporation/841956a_Self_Funding_WhitePaper.pdf
Another way as an independent physician or any businessman to cut the insurance leeches out of society
It makes financial sense for basically everyone who has the minimum required employees state dependent and who doesnt just employ those with multiple expensive comorbidities. Though as this sheet and just google self funded health insurance plan to see how financially fool proof it is with stop loss insurance (yes insurance but for an actual insurance policy that makes sense in owning)
like insurance companies make predictable decisions for guaranteed profits, the actuarial math works on a micro scale with some certainity as well. And the stop loss carries the occasional bad year. The ideal way is to have a liquid reserve or credit line on hand or within a couple days away to pay for the least stop loss premiums. But the pricing isnt linear so buying 25k vs 50k may mean only $500 a year
Its the liquid capital infusion that practices need (less so psych maybe) and provides a growing reserve of capital to better retain employees and save money for yourself, your employees and your patients. As I believe you need to spread the wealth in all directions to maintain robust economic relationships for long term success.
I believe own and operating your practice as a solo is the way to go, but forming a cost sharing group to take advantage of something like this is worth the inevitable difficulties with business partners.
Another way as an independent physician or any businessman to cut the insurance leeches out of society
It makes financial sense for basically everyone who has the minimum required employees state dependent and who doesnt just employ those with multiple expensive comorbidities. Though as this sheet and just google self funded health insurance plan to see how financially fool proof it is with stop loss insurance (yes insurance but for an actual insurance policy that makes sense in owning)
like insurance companies make predictable decisions for guaranteed profits, the actuarial math works on a micro scale with some certainity as well. And the stop loss carries the occasional bad year. The ideal way is to have a liquid reserve or credit line on hand or within a couple days away to pay for the least stop loss premiums. But the pricing isnt linear so buying 25k vs 50k may mean only $500 a year
Its the liquid capital infusion that practices need (less so psych maybe) and provides a growing reserve of capital to better retain employees and save money for yourself, your employees and your patients. As I believe you need to spread the wealth in all directions to maintain robust economic relationships for long term success.
I believe own and operating your practice as a solo is the way to go, but forming a cost sharing group to take advantage of something like this is worth the inevitable difficulties with business partners.
