“image Alternative Funding - FBMC Benefits Management, Inc.

Alternative Funding that benefits you and your Employees

Alternative Funding is a way to reduce cost and improve the employee experience by helping them find the right service, at the right time, at the right location, at the right price.

What is Alternative Funding?

The standard benefit model for the past 30 years has been a fully insured plan from a large health insurance company. This means premium payments are going to your chosen health insurance company with minimal data access and cost transparency. Let us introduce you to Alternative Funding. Alternative Funding is a way to reduce cost and improve the employee experience by helping them find the right service, at the right time, at the right location, at the right price. 

Our teams have experience developing Alternative Funding programs that are customized to our client’s unique needs including features like:

– Level-Funded Plans with Established Provider Networks
– Self-Funded Plans with Established Provider Networks
– Captives

– Third Party Administered Plans with Custom Networks
– Reference Based Pricing Solutions
– Reinsurance Risk Pools

What's the problem with rising healthcare costs?

Benefit plan costs are often the second or third largest expense item in a company’s profit and loss statement. No other cost of this size in a company lacks this level of transparency.
Most often there is little to no cost transparency or data available to understand and proactively manage these large annual expenses.
• Annual cost increases have often been passed along to employees; the average Family premium has increased 55% over the last 10 years, while the average wage has increased only around 10% over this same period.

What's the solution?

At FBMC we believe what you can see, you can measure, and what you measure, you can then improve. Alternative Funding provides you with a way to see and measure your benefits data and create actionable items to enhance your employee benefit programs.

Why an Alternative Funding Plan may work for you

Alternative Funding benefit plans provide the greatest amount of healthcare data and cost transparency to an employer and their benefit consultant, which:

  • Enables the Benefit Plan design the greatest flexibility to proactively help plan members find the best high-outcome/low cost (HO/LC) healthcare service.
  • Provides the opportunity to introduce cost management programs that reduce and waive employee out-of-pocket costs (deductibles, copays, co-insurance) for using these HO/LC services.
  • Ensures that these same cost management programs also significantly lower the annual costs to the Benefit Plan to the employer, often by as much as 10% – 15% in the first year.

How Alternative Funding plans benefit Employees

As an employer you can benefit with overall data and cost transparency; meanwhile, employees can benefit with higher quality care, gaps in care mitigation, and lower pharmacy and annual benefit plan cost.

When done right, having access to data allows employers to often lower costs for some out-of-pocket expenses (deductibles, copays, etc.) for their employees.

How can FBMC Help?

 Our consultants have over 45 years combined experience with Alternative Funding benefit plans. In that time we’ve built partnerships with industry-leading vendors and administrators in this market, and have multiple consultants formally certified in the Health Rosetta Advisers’ program. As your benefits expert, FBMC can help you understand what healthcare data you currently have available to you, and how to improve the analysis and leverage of this data.  We will help ensure that your company selects the best Plan and Funding design for meeting your business objectives.     

Ready to find out if Alternative Funding health plans are right for you?

Request your personalized assessment and find out where you are with your data. Our array of complimentary assessments and workshops will help you proactively evaluate other options.

FBMC offers assessments in the following areas:
• Benchmarking your plan cost trends compared to industry standards.
• Benchmarking pharmacy costs.
• Employee Survey on plan costs, access, and usability.
• Self-funding vs. fully insured workshop.

Please complete our contact form to get started and receive your complimentary assessment. You may also reach us via phone or email.


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