Industry experts working with pooled insurance groups agree that maintaining financial stability while growing membership is vital to continued success. But, this isn’t always easy to achieve.
Historically, there have been some well-publicized failures of self-funded plans and other pooled arrangements, which has colored public perception. Reading comments on proposed regulations to expand association health plans in term of who can band together to purchase health insurance, it becomes clear that, in some quarters, people are still concerned about both solvency and the adequacy of coverage.
However, there are many highly successful, fiscally rock-solid pooled groups, some of which have been in existence for decades. They serve thousands of satisfied organizations and millions of members across the US—among them are groups and individuals who may not have access to affordable healthcare elsewhere.
What do these top-tier pooled groups have in common? They all employ a best-practice approach to managing and growing their pool.
Here are three of their tried-and-true techniques to maintaining a happy and healthy group:
The concept of fit also applies to a group’s board. It’s important to choose people who understand the cooperative nature of a pooled group and are willing to act in the best interest of all stakeholders.
Another key cost-containment approach is to partner with high-quality vendors that provide deep discounts and performance guarantees and that have the proven ability to deliver.
With new proposed regulations potentially expanding the definition of who can form an association, there could be significant growth in the pooled insurance market in the coming years. For smaller employers and individuals without access to affordable coverage, this could be a new point of entry into gaining health insurance.
Want to know more about how stable, successful pooled groups are able to offer high-quality service, market-leading administration and access to affordable benefit options to smaller organizations? Check out our webinar.