BUSINESSWEEK ONLINE : JULY 10, 2000 ISSUE
FRONTIER -- FEATURES Remedy #3: Split Funding HOW IT WORKS: This is partial self-insurance. You tell employees they're responsible for expenses up to a preset limit, say $500. You then purchase a low-cost policy with a high-deductible, say $2,000. That leaves you liable for the difference, but the overall cost should be less than a conventional policy. WHO IT'S FOR: Works best for companies that have more than 10 employees who are generally young and healthy. WHERE IT'S OFFERED: All 50 states. WHAT'S GOOD: Saves 15% to 50% on premiums. Should hold down costs in the long run, since premiums on these policies are rising at half the rate of standard ones. WHAT'S NOT: Complex to set up and probably not worthwhile for very small businesses. You'll need help from a benefits consulting firm. Total savings will depend on how much health care employees use so firms with an older or sicker workforce could get hurt by the scheme. WHERE TO GO: Your best bet is to find a consultant who specializes in small companies. The generally acknowledged leader is Marsh Advantage America (800 441-1344), a benefits consulting firm with 50 offices nationwide. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ BACK TO TOP					RELATED ITEMS The Health Care Crisis CHART: Ouch! The Nation's Smallest Companies Faced the Biggest Hikes in Health Care Premiums TABLE: Remedy #1: Medical Savings Accounts TABLE: Remedy #2: Self-Funding with Stop-Loss TABLE: Remedy #3: Split Funding TABLE: Remedy #4: Association Health Plans TABLE: Remedy #5: Consumer Choice Health Purchasing Group CHART: Who's Covered Commentary: Search for a Cure INTERACT E-Mail to Business Week Online

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