Posted on 19 Apr 2013 by Neilson
Aetna is making it easier for mid-sized employers to provide health benefits directly to employees and assume the financial risk for their employees' claims, with Aetna's administrative support. Aetna Funding Advantage (AFA) delivers all the benefits of traditional self-insurance, plus enhanced billing and banking features to meet the cost stability needs of employers with 100-500 enrolled employees.
Traditionally, mid-sized employers have offered fully insured plans. With a fully insured plan, the employer pays a premium to their health insurer to cover both the medical and administrative costs of the plan.
More employers, however, are seeking self-funded options in order to provide a more consistent benefits experience to employees in multiple states with different mandates. The enhanced features of Aetna Funding Advantage have made it easier for employers to make this funding change.
"Employers are looking for consistent payments and simple plan administration. Aetna Funding Advantage allows mid-sized employers to make one monthly payment that includes all administration fees, stop loss premium and claims liability charges, making it easier for employers to self-fund," said Jill Serin, head of Middle Market Business for Aetna.
Employers who move to AFA can get money back in years when medical costs are lower than expected. Alternatively, the plan provides financial protection in years when medical costs are higher than anticipated.
"Aetna Funding Advantage gives employers the control they want, along with Aetna's leading wellness programs, consumer engagement tools, and enhanced reporting, allowing them to better manage their health care costs," said Serin.