Employers are increasingly turning to the self-insured model of healthcare out of frustration with traditional insurance — but they need to stop and think before diving in, an expert says.
To combat employers’ growing financial responsibility, companies are switching to self-insured healthcare models to lower costs. Last year, Metro Nashville Public Schools designed a payment system for maternity care with Vanderbilt Medical. In 2019, social media giant Pinterest switched to a self-insured plan because “traditional insurance was letting us down.” The previous year, the Colorado city of Arvada contracted with Paladina Health to restructure its benefit offerings to be self-insured.
