Renting Vs. Owning Your Health Insurance- Which Is Better For Your Business?
Are you a homeowner? Homeownership is a common goal in our country, offering control, flexibility, and potential returns on investment. However, owning a home may not be the ideal choice for everyone.
Some individuals opt to rent due to budget considerations, while others value the freedom to relocate more frequently. The decision between homeownership and renting ultimately boils down to personal choice and what best suits your current circumstances.
This same principle applies to your health insurance program. You must decide whether to own or lease your insurance, and it's essential to understand the distinctions between the two.
You are leasing your insurance if you have a fully insured health plan. "Leasing" your insurance involves paying a monthly premium (akin to rent) and transferring the risk to an insurance company that owns the policy.
While a fully insured plan offers certainty and safety, it provides little control to you as the policyholder.
The insurance company determines your plans and sets the annual costs. Regardless of how responsible a "renter" you are, your premiums will most likely increase every twelve months.
In contrast, you own your coverage if you self-fund your health insurance. Ownership grants you control and flexibility. In a positive financial year, you benefit from lower costs. However, in a year where insurance claims surpass expectations, you also bear that responsibility.
Self-funding your health insurance plan involves some risk, but it also allows your company the potential to earn a return on the investment – a benefit not available with a fully insured plan.
Ultimately, you must decide which option aligns best with your current situation. At DSG Benefits, we advocate for owning your health insurance, believing it provides the best opportunity to establish a sustainable benefits program that keeps you competitive in the years ahead.
Just as building your dream house is achievable, constructing a health insurance plan you love is possible.
Message me and let's start building it today!
I Help Coaches, Consultants, Speakers, Founders & Business Owners Upgrade Their Personal Brand
3 个月David, thanks for sharing!
Independently Investigating Healthcare Costs and Quality to Improve the Business of Healthcare
9 个月I love the comparison of renting vs. owning.