Self-Funded vs. Fully Insured Plans
We understand the no-fault insurance reform can be confusing, which is why we're dedicated to advising our clients on their options. We've created two white papers on the topic of no-fault reform and benefits plans, one for organizations with fully insured plans and one for organizations with self-funded plans.
No matter what type of health insurance you offer, we advise that you encourage your employees to continue to purchase the highest level of Personal Injury Protection (PIP) coverage they can afford.
This recommendation is for several reasons:
- If your employee waives or limits the PIP coverage on their auto policy, they are also waiving or limiting several coverages that a health insurance plan does not cover such as:
- In home attendant care
- Door-to-door medical appointment transportation
- Lost wages replacement
- Home & vehicle modifications
- Long term cognitive and speech therapy
- Health plans typically have a limit to how many they will pay for each year
- For those plans with high deductibles the employee would be responsible for paying the deductible out of pocket before their health insurance would kick in and pay
- In catastrophic claims where the person is injured and unable to return to work, they would eventually lose their employer-sponsored health insurance
While we don't believe that you can require employees to elect a certain PIP-coverage level or make it mandatory that they include PIP coverage from their personal auto insurance policies, you can educate them on the impact dropping coverage could potentially have on their lives in case of an accident. We can help.
Stay tuned for more information on the impact and implications of no-fault reform on auto policies and your organization.