JULY 3: Healthcare Reform: Self-Funding Your Business Pros and Cons

BY Arlene Weintraub | July 3, 2013

When San Jose, Calif.-based Bay Microsystems faced a 9 percent price increase on the health plan it provided for its 31 employees in 2012, human-resources manager Claudia Amendt didn’t go shopping around for a cheaper plan. Instead the company, which has provided health coverage for most of its 14-year history, switched to self-insurance and opted to pay the healthcare costs of all its employees directly, rather than offloading that risk to a traditional managed-care plan. As a result, Amendt says, Bay’s health-insurance premiums actually decreased by 10 percent. “Insurance is one of those costs that just keeps going up and up,” Amendt says. “At some point, you have to get creative.”

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