About Self-Funding

About Self-Funding

Why consider a Superior Self-Funded Solution through VBA?

Many groups choose to self-fund their health benefit plans because it gives them greater flexibility in the design of the plan compared to fully-insured packaged products. But there are other advantages as well.

Good claims experience, profits go to you.

Self-funded benefits can put you in control over managing the cash flow and cost of your health care benefits program. In fact, when changing from a traditional insurance plan to a self-funded system, the normal claims lag generally frees a significant amount of cash. With a good claims experience, monies that would be spent on premiums can be retained as your profit. With a 501(C)(9) trust fund, you also earn tax-free interest income on any unclaimed reserves. All contributions to your fund are tax deductible and you'll save on premium taxes too.

Choice of PPO by Region

When you self-fund with VBA, you can opt for the largest network or choose the Preferred Provider Organization (PPO) that makes sense for the geography of your local and out-of-state employees.

Continuity and Freedom

Stop loss insurance is typically part of a self-funded solution to help companies manage their claims exposure. With VBA, you can keep your plan design from year to year, even if you choose to change your stop loss carrier. VBA will shop stop loss carriers when your plan is up for renewal each year. This will ensure you the most competitive rates on the market so your employees enjoy a stable benefit, while you have the freedom to change carriers as you see fit.

Claims Flow Process

1. Bank account opened by group to fund benefit claims.
2. VBA receives authorization to print checks for claims through designated account.
3. Claims arrive at VBA - electronic or mail.
4. Claims for outside networks are sent for pricing.
5. Claims are processed according to the plan.
6. High dollar claims and 5% of all claims are reviewed for accuracy.
7. Twice weekly notification of checks written sent to groups (Tuesday and Friday).