Among the businesses eyeing the growing market for employer self-funding is one of Colorado's health systems, the University of Colorado Health.
Starting in January, the University of Colorado Health is going to start offering a range of self-funded plan options to employers with at least 75 workers, under a new division called UCHealth Plan Administrators, formed through the merger of two legacy plan administrators in the state, Medical Network and United Medical Alliance.
With six hospitals and a number of clinics and pharmacies across the state, the University of Colorado Health is billing itself as one of the only health systems in the Rocky Mountains to offer administrative and benefit design products for employers looking to self-fund.
"Employers are beginning a new era of directly providing coverage and care for their employees, and our focus is on helping them navigate this efficiently and simply," Kathy Major, executive director and VP of UCHealth's new division, said in a media release. "In addition to the cost savings, we're bringing these businesses and employees into a network of physicians and nurses that is among the best in the country," Major said, noting self-funding savings estimates of 10 to 20 percent for many employers.
The two merged administrators forming the new division handle enrollment, claims processing and other administration for part of the University health system and for 19 other large employers with about 19,000 individual and family members. With the new offerings, UCHealth is hoping to attract new businesses from greater Denver and northern and southern Colorado.
Major, who previously worked for Colorado's largest third party administrator, CNIC Health Solutions, said a key part of their goal is to "customize a benefit approach designed to meet each individual employer's needs, balancing cost with quality," with self-funded administrative services for high deductible plans, health savings and reimbursement accounts and prescription drug plans, along with stop-loss insurance.
Plan members will also have their electronic medical records available to them remotely. "That means people can see their own test results as soon as they become available, monitor their health histories, request appointments and email their physicians 24/7, thus taking control of their own care," Major said.
In addition to avoiding a number federal benefit regulations and the premium excise tax, UCHealth noted in a media release than self-funded plans don't have to pay Colorado state insurance premium taxes.