Understanding the challenges: interconnected role of benefits in schools
Schools face a myriad of challenges that require multifaceted solutions, such as:
- Stewarding their fiduciary responsibility to spend public funds or tuition dollars wisely
- Remaining at the forefront of innovation for families and talent who seek forward-thinking educational environments
- Navigating the competitive landscape as families and educators choose from several options for education: traditional public districts, public charter schools, independent and private schools, and homeschooling
- Managing budgets and spending through revenue fluctuations as enrollment rises and drops year to year
- Providing competitive pay and benefits to attract and retain top-tier educators to fulfill the school’s mission
Enhancing employee benefits programs is often viewed as a solution for issues related to employment, but these challenges are interconnected, with each issue influencing and affecting the others. By offering attractive benefits and embracing innovative solutions, schools may discover they are not only addressing the challenges they initially identified but also unraveling a hidden web of interconnected issues, paving the way for a brighter and more holistic educational environment.
Taking control: innovative approaches to funding your benefits program
Educational institutions may experience frustration with their fully insured benefits program if they face high renewal increases and receive insufficient data from carriers to justify the costs. While fully insured programs may be the right fit for some schools, it’s important to explore multiple funding alternatives as your organization and the economy evolve. Even in states like California, where self-funding may present challenges, considering alternative funding options can help you take control of your plan, obtain data to support your spending decisions, and effectively address high claims to maintain a healthy and engaged workforce.
For smaller employers, where completely self-funding may not be feasible, there are options that provide a middle ground between fully insured and self-funding. Many of these options include programs specifically tailored for various types of schools, such as charter schools, independent schools, and faith-based organizations. These alternatives offer:
- Protection through stop-loss, risk pools, or other cost-control measures
- Reduced pricing volatility
- Ownership of your data and claims experience
- Flexibility in plan design
- Ability to retain unused funds
Choosing the right funding option for your benefits program doesn't have to be as daunting as solving a complex equation on your own. In fact, think of it as a group quiz, where you just need to find the partners to ace the test.
Take the next step: reach out for personalized benefits guidance
Marsh McLennan Agency’s Education Practice is dedicated to partnering with over 1,500 schools across the country.
When it comes to funding your benefits program, our team of specialists can help you explore the spectrum of alternative funding options tailored to your organization's needs.
Reach out to our MMA Education Practice today to learn more about alternative funding and how we can assist you in developing a customized approach that makes sense for your institution.
