What is the difference between a self-funded vision and dental plan compared to a fully insured plan?
The self-funded vision plan is a reimbursement program. You may utilize any licensed eye care provider. A typical vision plan would reimburse an employee $50 for an exam and $100 for glasses or contacts. This level of benefit matches plan designs offered by the fully insured market but at a much lower cost. A fully insured PPO dental plan costs between $30 and $40 a month for single coverage. The self-funded dental plan with the same benefit level runs between $15 and $20, including the administration fees. Vision programs are approximately $6 to $10 per employee per month. The monthly cost for a self-funded vision plan for single coverage is in the $2 to $3 range. Why are employers taking advantage of and implementing self-funded plans now? By moving dental and vision to a self-funded plan, employers automatically save 10 to 20 percent overhead that a typical insurance company would have to charge to make a profit. There is no additional work involved for a busy business owner because
