Reserves

All self-insured employers need to set aside a reserve for claims that are incurred by plan members, but remain to be paid.

Setting – and monitoring – an appropriate reserve is important at any time, and, in a tough economy, it can be critical. Extraordinary influences, such as the forward-buying of medical services in anticipation of layoffs, for example, require monitoring so a reserve can be adjusted. We’ve published a white paper about multiple factors that can negatively impact the cost of self-funded plans during tough times. You can download it here.

Our BenefitsWatch service provides continuous monitoring of your reserve, and avoids what could be a multi-million-dollar surprise.