Review of Funding Options

There are a number of alternative underwriting arrangements which exist in the marketplace. Depending on the size of the account, and the client's aversion to risk, these factors will have a huge impact on the client's eventual decision on the choice of Underwriting Model for their account.

Among the various underwriting models that exist in the Group Insurance Marketplace include:

• Prospective (Regular) Underwriting
• Retention (Refund) Accounting
• Simplified (Modified) Retention
• Administrative Services Only (ASO) / Self Funding
• Hold Harmless Arrangements
• Health Spending Accounts (HSA)
• Flex Benefit Programs

Depending on the situation, we would outline underwriting options which would be most applicable for a particular client. As part of this analysis, we outline the pros and cons of establishing a benefits program on the chosen underwriting arrangements.

Although the analysis of this information can often seem tedious, we try to lay out all information to our clients so that they can make an informed decision on this item.