2020 June

Self-funding Your Health Care Costs

Clare Krabill
Clare Krabill, MHS Chief Operating Officer and MEP Managing Director

by Clare Krabill

During these unprecedented times, many of you will seek strategies to help your bottom line. One major expense most of you share is employee benefits. In fact, some of you may be asking yourself if there is a need to cut back on these benefits even as you are loathe to consider it.

One option to consider is self-funding healthcare costs. Self-funding increases your financial control, plan design flexibility, and plan management options. According to the ASAE article, A Thoughtful Approach to Reducing Benefits Costs When There’s No Alternative, self-funding can reduce your annual healthcare spending by 4 to 10 percent. 

As members of MHS, your organization has access to MHS’ Medical Expense Plan (MEP). Created in the mid-1980’s in partnership with Everence, the MEP has 11 MHS member organizations participating to insure more than 3,000 individuals. The MEP offers wholistic health coverage and many benefits that go beyond typical self-funded plans. These include:

Financial Benefits Through:

  • Risk and cost sharing through a pooled experience
  • Distributions 7 out of the last 10 years
  • Rate stability and reduced volatility
  • Regulation exempt church plan status that lowers administrative and benefits costs
  • Collective purchasing and negotiating power with over 130,000 other participants through the Church Benefit Association

Quality Health Care Through:

  • A national network of medical providers
  • A Wellness program
  • Telemedicine
  • 24/7 care navigation services
  • A collaborative peer network of MHS member organization leaders
  • Shared values

Want more information? If you have 25 or more eligible employees (> 20 hours/week), watch this 5-minute informative video about MEP[CK1] and contact Clare Krabill, MHS COO & Managing Director of the Medical Expense Plan at mailto:clare@mhsonline.org. It may be a path forward that provides your organization’s colleagues with excellent health coverage and helps your bottom line.

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