PRINCETON, N.J.--(BUSINESS WIRE)--Health insurance executives expect U.S. employers to increasingly self-fund their group health insurance plans as a result of the Affordable Care Act, according to a survey released today by Munich Health North America, a subsidiary of Munich Re, one of the world’s largest reinsurers.
Among those surveyed, 82 percent have experienced a growing level of interest among employers in self-funding their group health insurance plans over the past 12 months, with nearly one-third (32 percent) stating that interest has increased “significantly.”
“The trend towards self-funding stems from employers’ desire to maintain a level of flexibility and control in the design and financing of their employees’ health benefits,” said Richard Phillips, President of Munich Health North America’s Reinsurance Division. “A properly designed self-funded health plan can allow a company to directly reap the benefits of their cost containment and wellness activities as opposed to having to pay a monthly premium based on an arbitrary set of rating restrictions. As companies struggle with the growing cost of providing quality benefits, we expect self-funding to continue to grow in popularity.”
Health insurance organizations expect to see growth in their self-funded or Administrative Services Only (ASO) portfolios as a result of this trend towards self-funding. Of those surveyed, nearly 7 in 10 (69 percent) plan on growing their self-funding or ASO portfolios over the next year.
Munich Health surveyed 326 executives representing health plans, health maintenance organizations and disease management firms, as well as health insurance brokers and agents, regarding the extent to which the Affordable Care Act will influence decision-making related to employee health benefits.
The survey was conducted by Munich Health during the period of March 6, 2013 to March 11, 2013. Executives representing a broad range of health care services and solutions providers were surveyed through in-person and online polling. In-person surveying was conducted at the Munich Health North America Symposium 2013, held in Scottsdale, Arizona from March 17-19, 2013.
Munich Health is one of three business segments of Munich Re. Here all international health care business in insurance and reinsurance operations, as well as related services are pooled under the Munich Health brand.
Munich Re stands for exceptional solution-based expertise, consistent risk management, financial stability and client proximity. This is how Munich Re creates value for clients, shareholders and staff. In the financial year 2012, the Group – which combines primary insurance and reinsurance under one roof – achieved a profit of €3.2bn on premium income of around €52bn. It operates in all lines of insurance, with around 45,000 employees throughout the world. With premium income of around €28bn from reinsurance alone, it is one of the world’s leading reinsurers. Especially when clients require solutions for complex risks, Munich Re is a much sought-after risk carrier. Its primary insurance operations are concentrated mainly in the ERGO Insurance Group, one of the major insurance groups in Germany and Europe. ERGO is represented in over 30 countries worldwide and offers a comprehensive range of insurances, provision products and services. In 2012, ERGO posted premium income of €19bn. In international healthcare business, Munich Re pools its insurance and reinsurance operations, as well as related services, under the Munich Health brand. Munich Re’s global investments amounting to €214bn are managed by MEAG, which also makes its competence available to private and institutional investors outside the Group.
This press release contains forward-looking statements that are based on current assumptions and forecasts of the management of Munich Re. Known and unknown risks, uncertainties and other factors could lead to material differences between the forward-looking statements given here and the actual development, in particular the results, financial situation and performance of our Company. The Company assumes no liability to update these forward-looking statements or to conform them to future events or developments.