Does your corporations Self-funded Health Plan put a price tag on your head that may get you laid off?

Question

A majority of large corporations now self fund their health plans. Smaller companies, some with fewer than 100 employees, are moving to this trend too. This means the corporation you work for is paying for you and your families medical costs.

Anyone else concerned that this trend is both an invasion of privacy and puts a target on your back if you or any one of your family members has serious medical bills?

You're running XYZ, Inc and employ John Doe for an annual salary of $75,000. You provide a medical benefit of $10,000 and John picks up the other $5000 of the annual premium. With 401K matching, & other benefits, he cost XYZ, Inc. $100,000 a year. John's wife, Jane Doe has a chronic illness... costing about $50,000 annually.

XYZ, Inc. knows John is costing them $150K, not $100K. Does John have a target on his back?

Answer 1

I wouldn't think so as the insurance fund is likely administered by a third party. But, you can bet there is a move to keep you health, wealthy and wise as it is a benefit to the bottom line.

If you want to have insurance without limits, you will have to pay through the nose to get it. Your company has found this out and that is why they are self insured now.

They are simply playing the odds that everybody will not get drastically sick at the same time. If they do, it will bankrupt the fund, not the company.