The uncertainty of it all...
There has been a lot of uncertainty surrounding the healthcare industry in recent years and even more now with a newly elected President in office. Last month the Trump administration tried to repeal the Affordable Care Act but they did not have enough Republican support to vote the GOP health-care plan into action. Nevertheless, Healthcare reform remains a top priority for the Trump administration as they hope to repeal the ACA before tackling their plans for a tax overhaul. With the current political climate on healthcare and the ballooning costs of insurance premiums many employers have started to look for less conventional means to find affordable and stable healthcare for their employees. One such option has become a popular trend in recent years and that’s self-funded health plans.
A rapid change...
What can we expect for the future of self-funding?
If President Trump and the GOP are successful in repealing the Affordable Care Act, the simple conclusion would be that the trend of Self-funded plans would cease - if Obamacare caused the surge in self-funded plans, then one would think its repeal would have the equivalent reverse effect. Well, it might not be that simple. ACA or not, employers are searching for any savings they can grasp onto in a country were healthcare and drug costs are rising out of control.
Self-funding still provides great flexibility and carrier profit margin savings, regardless. So, unless the overall cost of healthcare premiums start to decrease across the board, don’t be surprised if the self-funded trend continues, regardless of how the healthcare reform changes under the Trump administration.
In fact, this uncertainty in healthcare over the next 4-8 years could just be another driving motivation for even more companies to consider self-funding. All of which remains to be seen.