Strategies for HR to manage the impact of reform

September 27, 2010

One of the contributors to the always worthy and interesting The Health Care Blog, Mike Turpin, has some very interesting and challenging advice for HR benefits managers as they consider how to respond to the changes wrought by the Affordable Care Act. For example, here’s a short excerpt:

Don’t be intimidated by self-insurance – Many employers underestimate the advantages of self-insurance and overestimate its complexity and risk.  But, in a post reform world, firms with more than 200 employees should give serious consideration to partial or total self-funding.  Aside from the total transparency of commissions, fees, administrative expenses and pooling charges, employers own their own data. The sooner employers get comfortable with self-insurance as a risk financing strategy, the sooner HR professionals can construct loss control programs that can mitigate claims costs.”

Mr. Turpin is currently the Executive Vice President for Benefits for the New York based broker, USI insurance Services and was formerly northeast regional CEO for United Healthcare and Oxford Health.  Great food for thought, and recommended reading.

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