July 8

A new online analysis concludes that self-funding is not the answer for certain employers in competitive markets. In fact, HCTrends points out that in some cases projected savings never materialize, costs grow, choices are lost and care is disrupted.

The HCTrends analysis is posted here.  

The online post explains that any potential savings from self-funding "can quickly be erased if the coordination of care is weakened or if there is a new network arrangement with inferior provider discounts."

In contrast, Deloitte, writing in a separate analysis, found the current State Group Health Program to be "an effective cost containment approach on a sustained basis." It's a message decision-makers should not ignore.


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