HealthLeaders-InterStudy, a provider of managed care market intelligence, reports that from January 2008 to July 2008 self-insured medical enrollment grew by 1.6 million, or 2.2 percent, to more than 75.3 million members nationwide.
"Increasing medical costs and a willingness to assume more risk are driving many employers, even small employers, to shift to self-insured medical enrollment products," said Sheri Sellmeyer, vice president of analysis for HealthLeaders-InterStudy.
By assuming more risk, employers can reduce the overall premium costs for each employee through the elimination of premium taxes, risk charges and other costs. As employers seek lower cost alternatives to traditional fully insured medical products, more insurance companies are offering self-funded options to meet demand.
"Historically, we saw only the largest companies self-insure, but now employers with as few as 200 employees are moving toward self-insured plans as a way to control costs," said Sellmeyer.
Employers are also offering high-deductible consumer-driven health plans as an alternative healthcare benefit. According to HealthLeaders-InterStudy data, national enrollment in consumer-driven health plans increased by nearly 900,000 lives to more than 6 million members from January 2008 to July 2008.
"Consumer-driven health plans shift some of the risk and cost-sharing responsibilities to employees seeking a lower monthly premium, and provide employers another cost-saving option," said Sellmeyer.