Download your copy of The Risk & Reward of Alternate Funding Arrangements
The alternate funding arrangement (AFA) is your customized plan designed to meet your specific requirements, giving you the flexibility to set your own budget/rates, reserves, plan designs, provider networks, communications, and make any changes/adjustments needed to align the plan with your objectives. You have the control to operate and manage all the aspects of your plan for the interest of the participants. This control does come at a cost...you're inheriting full-time administration of the plan (previously the carrier's job) - you can't just set it and forget it!
Employers of all sizes are using a multitude of financial arrangements to fund their benefits, ranging from pure self-funding (with or without stop loss), minimum premium plans, and retro plans, to level funded arrangements. They are all variations on the same theme whereby you, the employer, assume more risk than you would under a traditional insurance program. This will almost always exceed what your traditional insurance premium would have cost. It is important to keep in mind...the more risk you accept offers the greatest potential for savings but also exposes you to greater potential for loss.
So, why should you consider an Alternate Funding Arrangement (AFA)?
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