The words of the CEO of pinterest, citing being “fed up with the healthcare system…” as well. They, like a growing number of companies, are switching away from traditional coverage, and opting for self-funded or level funded plans.

“Nobody remembers how good health benefits are on paper, but everyone remembers what the experience is like,” says Alice Vichaita, head of global benefits at Pinterest. “Despite all our effort and thoughtfulness, the traditional health insurance experience was letting us down.”

When you are a relatively health company, you end up paying more than you need to. We operate on the assumption that all those premiums are needed to pay claims, and sometimes they are. However in my experience claims typically run around 70% of the money set aside for them. Who gets the remaining 30%? The Insurance company keeps it.

With Self-funded or Level-funded plans, you begin with lower premiums and a lower claims pool, and you share in any funds unspent at the end of the contract.

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