Three ways employers pay for health benefits
Employers can choose one of three different ways to pay for your health plan:
Fully funded plans
- Employer pays a monthly premium for each employee.
- Priority Health pays all claims for medical services and administers the plan.
- Priority Health takes the risk if medical costs are higher than budgeted.
Shared funding plans
- Employer pays a monthly premium to cover all claims for medical services and administrative costs.
- Priority Health provides administrative services.
- Employer shares the risk with Priority Health if medical costs are higher than budgeted.
Self-funded plans
- Employer pays claims for medical services for its employees.
- Employer pays Priority Health a monthly premium to administer the plan.
- Employer takes the risk if medical costs are higher than budgeted.
