MADISON, WI. (Nov. 14, 2022) – 71% of employers expect moderate to significant cost increases to health care benefits over the next three years. Steve Rick, chief economist at CUNA Mutual Group, stated the inflation rate is at a staggering 8.2% with health care costs rising by 6.5% in 2022 when he spoke at The Alliance’s 2022 Fall Symposium and Annual Event.
As inflation continues to rise, more employers are seeking ways to manage their health care spend. Walker Forge, a self-funded steel forging company, has reduced their all-in health care spend per employee to 28% below the national average. Most employers have seen an upwards of 7% increase in average inflation each year. Through self-funding Walker Forge has been able to keep their premiums flat for the last three years.
Over the last year, almost 50 employers made the decision to pursue self-funding and found savings by joining The Alliance. The Alliance helps employers manage increasing costs and take control of their health plans for their bottom line and their employees’ health. In 2021 alone, The Alliance saved its employer-members over 360 million dollars.
Self-funding is a cost-effective alternative to the traditional fully insured approach. When a company chooses to self-fund, they take on the responsibility – both the risk and rewards – of paying the medical and prescription drug claims of employees and their families.
The Alliance serves as the voice for self-funded employers who want more control over their health care costs. Using Smarter NetworksSM and sophisticated data mining and analysis, they provide transparent, creative approaches to network and benefit plan design to unlock savings where others can’t – or won’t. The Alliance remains a trusted, objective partner for its 300+ employers and their brokers who seek improved access to high-quality health care by contracting with a network of 34,000 health care providers and doctors across the Midwest.
To learn more about The Alliance, visit: https://the-alliance.org/.
Senior Marketing & Public Relations Specialist