Nonprofits Try Partial Self-Insurance To Reduce Health Costs

Getting health insurance if you work for a nonprofit can be tough. To save money, employees often end up buying high-deductible plans, sometimes spending thousands of dollars in co-pays and fees.

But the Nonprofit Association of Oregon is teaming up with health broker Nonstop to allow small to midsize nonprofits to partially self-insure.

Jody Schreffler of Nonstop, said it works by keeping employees in plans, even if they have a high-deductible, while also having them pay into a reserve account. That money is then used to pay co-pays and fees.

Nonstop also offers healthcare benefits and administration for nonprofits with more than 50 employees on healthcare.

“We risk mitigate for these large non-profits. Drop the premiums, we administer the plan. And after six months, look at that reserve account. And if they have not exceeded what they’ve set aside, we return two thirds of that back to the nonprofit,” said Schreffler.

Jim White, the executive director of the Nonprofit Association of Oregon said the new system, "offers an immediate solution to containing premium costs."

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