Health insurers are predicting an increase in self-funded health insurance plans by U.S. employers in response to the Patient Protection and Affordable Care Act (PPACA).
According to a study released Monday by Munich Health North America, a subsidiary of reinsurer Munich Re, employers are expected to increasingly do away with providing group health insurance to their employees and are expected to instead self-fund their plans.
“The trend toward 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.
Among the 326 industry executives surveyed, 82 percent said they have seen a growing level of interest among employers in self-funding their group health insurance plans over the past 12 months, with nearly one-third saying that interest has increased “significantly.”
Nearly 70 percent of health insurance organizations plan on growing their self-funding portfolios over the next year, the survey also found.