Self-Funding Pockets $279K
October 7, 2022
With 140 employees, CMHS had been fully insured for years. It was 2019, and their January 1 renewal was approaching.
With 140 employees, CMHS had been fully insured for years. It was 2019, and their January 1 renewal was approaching.
With 140 employees, Comprehensive Mental Health Services (CMHS) had been fully insured for years. It was 2019, and their January 1 renewal was approaching. After a year of low medical claims, they were offered a 0% increase by their insurance carrier.
A 0% increase in premiums is normally seen as a positive. Yet analytics run by The Miller Group found CMHS could actually save money being self-funded if the group’s underlying risk stayed the same. Instead, the insurance carrier was the one benefiting from CMHS’s low claims.
CMHS wanted to take on more risk to see if they could save even more by becoming self-funded, paying claims themselves. The Miller Group ran a myriad of analytics and guided them through the entire process.
For 2020, CMHS budgeted $1.47 million yet spent only $1.19 million. This created a surplus of $279,000 to use for the next year’s claims.
“Making this change allowed us to save money that we can use to provide better and additional benefits for our employees. As a non-profit, that’s huge!“
Julie Pratt,
President/CEO