Health insurer Aetna has launched a new product to help mid-sized employers offer health benefits directly to employees and also assume the financial risk for their employees' claims.
Known as Aetna Funding Advantage (AFA), the new product provides all the benefits of legacy self-insurance, along with enhanced billing and banking features to address the cost stability requirements of employers with 100-500 enrolled employees.
The product provides employers with self-funded options to offer a more consistent benefits experience to employees in multiple states with different mandates.
Aetna Middle Market Business head Jill Serin said the AFA makes it easier for employers to self-fund by enabling them to make one monthly payment featuring all administration fees, stop loss premium and claims liability charges.
''Aetna Funding Advantage gives employers the control they want, along with Aetna's leading wellness programs, consumer engagement tools, and enhanced reporting, allowing them to better manage their health care costs,'' Serin added.
Equipped with fully insured plans, the mid-sized employers traditionally pays a premium to their health insurer to cover both the medical and administrative costs of the plan.
Employers moving to AFA will be reimbursed if medical costs are lower than expected, and financial protection will also be provided when medical costs are higher than anticipated.
