Funding

Minimizing Expense and Maximizing Value

When it comes to funding your employee benefit program, we negotiate premiums, fees and expenses with insurers and vendors as if it were our own money. Our internal motto is: “If you would not be willing to pay for it yourself, then don’t recommend it to a client.” We help establish a comprehensive budget for our clients and then present creative approaches to minimize expense such as alternative risk arrangements and employee cost sharing approaches. By presenting alternatives in a concise format supported by clear explanation, Pentra simplifies complex funding arrangements. Once an approach is decided upon, we forecast budgets and outcomes, then continually monitor performance to validate their accuracy and make any necessary adjustments.

We help our clients determine how their tolerance for risk compares with their need for plan flexibility and their desire for reduced long-term expense. As part of our process, we work with our clients to understand the importance of:

  • Overall expense reduction
  • Tolerance for risk
  • Predictable cash flow
  • Balance sheet implications including banking covenants
  • Predictable budgeting
  • Fiduciary considerations
  • Administrative and compliance implications

We then work with our clients to evaluate every possible funding approach. These may include, but not be limited to:

  • Fully insured
  • Participating and non-participating contracts
  • Minimum and level funding
  • Captives
  • Self-insured with stop loss insurance
  • Self-insured

Determining the right approach to plan funding will have a material impact on costs and the opportunity for reducing expenses. This decision should be evaluated carefully and reviewed annually.