PlanYear Launches Support for Self-Funded Short Term Disability Plans

Welcome to the latest enhancement in PlanYear's suite of tools for brokers - support for Self-Funded Short Term Disability (STD) plans. Support for self-funded Short Term Disability (STD) plans is a crucial component in the landscape of employee benefits, offering a range of advantages for both employers and employees including: 

1. Customization and Flexibility:
   Traditional, fully insured STD plans may not always align perfectly with the unique needs of every organization. With support for self-funded STD, employers gain the flexibility to tailor disability plans based on the specific requirements of their workforce. This customization ensures that employees receive coverage that directly addresses their needs, fostering a more engaged and satisfied workforce.
2. Cost Control:
   Self-funded STD plans empower employers to have greater control over the costs associated with disability coverage. Rather than paying fixed premiums to an insurance carrier, employers can directly manage and control the financial aspects of their disability plans. This control allows for more efficient budgeting and the ability to adjust coverage based on financial realities.
3. Risk Management:
   Self-funding provides employers with a level of risk management not found in traditional plans. By assuming the financial risk associated with short-term disability claims, organizations can potentially save on premium costs during periods of low claims. Additionally, risk management strategies can be implemented to mitigate financial exposure during peak claim periods.
4. Claim Transparency:
   With self-funded plans, employers have greater visibility into the claims process. This transparency allows for a better understanding of claim trends, enabling proactive measures to address potential issues. Employers can work closely with third-party administrators to streamline claims processing and improve overall efficiency. Claims can also be viewed within the PlanYear platform (read more about PlanYear’s claims solution here).
5. Adaptability:
   Workforce dynamics are constantly changing, with fluctuations in size, demographics, and geographic locations. Self-funded STD plans provide employers with the agility to adapt coverage to changing workforce needs without being bound by the constraints of pre-packaged insurance plans. In addition, self-funded STD plans can make it easier to coordinate benefits with state programs or salary continuation programs.
6. Data-Driven Decision-Making:
   Self-funded plans generate valuable data on claims, utilization patterns, and employee health trends. This data can be leveraged for informed decision-making, helping employers refine their benefits strategy over time. Insights from the data enable proactive adjustments to the plan to better meet the evolving needs of the workforce.

Adding a New Self-Funded STD Plan
Adding a self-funded STD plan is a breeze. Users simply click the 'Add Plan' option in the System Plan Screen and select ‘Self-funded’ from the funding type drop-down. This will introduce fields like 'Admin fees' and 'Estimated Annual Claim', providing the flexibility to enter details immediately or during plan renewal.

Renewal Process
During the renewal process, the system will prompt for enrollment numbers and admin fees if not previously provided for a self-funded plan. Note that these fields become mandatory during renewal if left empty.
If 'Self-Funded' is chosen, specific fields for 'Admin fees' and 'Annual estimated claims' will appear. These are mandatory, providing essential data for accurate proposal generation.
The Self-Funded total annual premium will be calculated using the formula: Total Annual Premium = Admin Fees per Month * Number of Eligible Employees * 12 + Annual Estimated Claims.
When exporting data for self-funded plans, brokers will now be able to include new rows labeled 'Funding Type', 'Admin Fees', and 'Annual Estimated Claims'.

What’s Next 
Support for self-funded Short Term Disability plans empowers employers with the tools needed to create a more tailored, cost-effective, and employee-centric benefits package. Flexibility and control are essential for organizations seeking to navigate the complexities of modern employee benefits while ensuring the well-being of their workforce. As such, PlanYear will soon be expanding support for Self Funded Medical, Dental & Vision plans.
 

Want to learn more about the PlanYear AI-Powered Benefits Platform? Contact us now to learn how you can quickly modernize the employee benefits experience with PlanYear.