Alternative Funding Solutions

Exude is the committed partner you can count on to solve your most challenging business problems. Utilizing our deep insurance market knowledge and product analysis, we design healthcare solutions to impact your organization’s bottom line.

If you’re looking for an effective way to manage rising healthcare costs, consider using alternative funding solutions. Options such as level-funding, consortiums, captives and self-funding opportunities can help you increase your working capital and alleviate your company’s financial burdens.

Types of Alternative Funding

Work with our experienced, knowledgeable professionals to learn more about nonconventional funding options. We can answer your questions, provide educational resources and offer tailored advice to help you accomplish your business goals.

1. Level-Funding

Level-funding can help small and midsized businesses offer affordable health insurance, control healthcare costs and provide predictable cash flow to forecast business expenses. Employers who choose this plan will pay a fixed monthly amount to cover claims, administration and stop-loss insurance expenses.

Even if the claims are higher than expected, the employer is protected from paying more than the fixed monthly amount. If the claims are lower than anticipated, the employer may be eligible for a refund.

2. Consortiums

A consortium program may offer a solution when you want to reduce your financial risk with a self-funded plan. For example, Exude has a proprietary Solution Builder Program that allows multiple organizations to negotiate favorable terms for stop-loss purchasing power. The coverage protects participants from unexpectedly high claims that exceed a certain threshold.

When you join a consortium with hundreds of other businesses, you’ll share the same stop-loss carrier and receive discounted rates. The plan’s designs are completely customizable, and if claims run well, you could receive 100% of the surplus.

Your company will have the option to pay claims as they’re received. If you’re comfortable with setting monthly premiums, you can also pay a Maximum Cost.

3. Captives

Want greater control over your claims management and coverage options? Replace traditional insurance options on the market with a captive plan, which involves having your company create its own insurance agency called a “captive.”

With this arrangement, your company can create tailored coverages to suit the unique needs of your workforce. Your business might also benefit from cost savings and tax advantages.

Industries with unique work conditions and exposures, such as technology or manufacturing, may benefit from nontraditional healthcare plans. The captive arrangement’s flexibility and customization allow for specialized coverage.  Exude has access to many captives based on your organization’s needs.

4. Self-Funding

Companies with fully insured benefits programs pay for premiums. The insurance company you work with assumes the risks of those costs. In many cases, the premium expenses may exceed the claim and lead to wasted spending.

When your business operates a self-funded health care plan, you’ll manage costs internally. Companies that choose the self-funded option can potentially save money by only paying for the claim instead of the fixed premium.

Additionally, employers gain the freedom and flexibility to create a tailored focus on specific areas such as mental health, maternity care or chronic condition needs. This personalized approach helps improve employee satisfaction and boost retention rates.

The Right Funding Solution For Your Organization

For Exude clients, we perform our Funding Fit Assessment™ which reviews factors such as your demographics, risk tolerance, cashflow, and administration/compliance as it relates to your employee benefits strategy. We’ll investigate how your organizational goals are aligned to your benefits strategy, how your plans compare to the industry, and if you’re in compliance.  This approach allows us to consider several different funding strategies to see where there is the most opportunity for your organization.

Want to Learn More?

Discover which alternative funding option is right for your business. Speak with the experts at Exude today.

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