Patrick's had a couple recent posts on "alternative arrangements" such as MEWAs and self-funded plans (here and here), and I thought I'd throw in my 2¢ on the matter.
[ed: click here for a more detailed explanation of self-funding under the ACA]
Recently, Aetna's been pushing its version pretty hard, with emails like this:
"Are your clients looking for more options? Think bigger with Aetna Funding Advantage ... Aetna Funding Advantage plans are self-funded, which means they aren’t subject to all of the same rules as an ACA plan. And, they could help save your clients as much as 24%*."
That little * is to alert one to the fact that YMMV.
Be that as it may, it's pretty interesting that carriers are finally developing these products for the small group market (although they're literally 10 years late to the game). One presumes that this is simply recognition that there really is a market for these products, as employers struggle to stay afloat while offering (and helping pay for) group health plans.
And speaking of which, they didn't just scale down a large group product, but apparently built one specifically for smaller companies. From their online toolkit:
"Aetna Funding Advantage [is] similar to the self-funded plans traditionally offered to larger companies, but designed with smaller clients in mind."
They even have a helpful video to help explain the benefits and process of self-funding for smaller groups.
Very cool.
[ed: click here for a more detailed explanation of self-funding under the ACA]
Recently, Aetna's been pushing its version pretty hard, with emails like this:
"Are your clients looking for more options? Think bigger with Aetna Funding Advantage ... Aetna Funding Advantage plans are self-funded, which means they aren’t subject to all of the same rules as an ACA plan. And, they could help save your clients as much as 24%*."
That little * is to alert one to the fact that YMMV.
Be that as it may, it's pretty interesting that carriers are finally developing these products for the small group market (although they're literally 10 years late to the game). One presumes that this is simply recognition that there really is a market for these products, as employers struggle to stay afloat while offering (and helping pay for) group health plans.
And speaking of which, they didn't just scale down a large group product, but apparently built one specifically for smaller companies. From their online toolkit:
"Aetna Funding Advantage [is] similar to the self-funded plans traditionally offered to larger companies, but designed with smaller clients in mind."
They even have a helpful video to help explain the benefits and process of self-funding for smaller groups.
Very cool.
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