HONOLULU--(BUSINESS WIRE)--UNITE HERE Local 5 has launched www.SelfInsuranceCaseStudy.org as part of a campaign to encourage public and private employers to consider the benefits of self-funded health insurance programs. The website focuses on the successful efforts of Stanislaus County, California to reduce its healthcare cost increases by moving to a self-funded self-insurance program. UNITE HERE Local 5’s www.SelfInsuranceCaseStudy.org provides municipal policymakers, risk managers, county administrators, human resources directors and group employers information and resources about self-funded programs.
Lack of price transparency is an inherent problem with a fully-insured system. UNITE HERE Local 5 shows how the County had a history of healthcare premium costs which weighed down the County with higher margins, risk charges and premium rates. The County moved to a self-funded program to gain independent control of its financial data, utilization data, underwriting and rate determination from its insurers Kaiser Permanente and Anthem Blue Cross. Stanislaus County saved an estimated $5.5 million in the first year of its program.
As of 2015, Stanislaus County stopped offering Kaiser Permanente. Anthem Blue Cross is offered only on a limited basis.
The County accomplished its cost savings with assistance from consultants and third party administrators and with agreement from numerous labor unions.
UNITE HERE Local 5’s future updates to www.SelfInsuranceCaseStudy.org will provide more case studies and resources. The website invites viewers to ask questions and provide comments on their own experiences with Kaiser Permanente, other insurers and self-funded insurance.
About Unite Here Local 5 – Local 5 is the Hawaii-based branch of the UNITE HERE union, which represents over 250,000 North American members, with a tradition of consumer advocacy.