The Hidden Power of Self-Funding: Navigating Rising Renewal Costs

Self-funding has emerged as a powerful yet often underutilized strategy in the ever-evolving world of employee benefits. Amidst the challenges of soaring healthcare costs, including the escalating expenses associated with specialty medications and an astounding 40% surge in renewal rates this year, many clients have yet to explore the vast potential of self-funding. In the face of these daunting financial hurdles, it's high time we reconsider the status quo and meticulously assess all available options.

Healthcare renewal season can be a trying period for plan sponsors and beneficiaries. The relentless increase in healthcare costs, particularly the skyrocketing prices of specialty medications, presents a formidable challenge. However, self-funding is often underestimated as a compelling solution.

The transformative impact of self-funding becomes apparent when we recognize that even a small percentage of claims can translate into a substantial portion of expenses. Consider a scenario involving a group of 200 lives within your organization. Just 1-2 members with approximately 5-7 prescription claims can significantly impact overall expenses. Addressing prescriptions alone could yield cost savings of up to 20%.

It's crucial to shift the conversation towards exploring self-funding as a strategic solution, especially amid unprecedented renewal rate increases. By doing so, we can unlock the hidden power of self-funding and navigate the complex terrain of rising renewal costs with confidence and financial resilience.

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Take control of your pharmacy benefits with proactive strategies that align with your health plan's financial goals. Contact APC today to learn how we can help navigate the complexities of drug pricing, optimize PBM selection, and protect your health plan's bottom line.