Funding Options

The funding of a Private Health Spending Plan is determined as the plan is developed. The size of the company, the desired turnaround time on claims payment and any additional products chosen will be taken into consideration when determining the payment options. Generally, the following options are available:

1. Per Claim Payments – This option is available for companies with one to five employees. Payment for a claim is submitted at the same time as the claim itself. The advantage for the small business is that dollars are only paid at the time of a claim. Payment of claims may be delayed due to bank clearance requirements.
2. Trust Fund Deposits – This option works well for companies with more than five employees who want to keep their administrative time to a minimum. Lump sum deposits are made into a trust account from which claims payments are then processed. Claims are paid upon receipt resulting in superior turnaround times.
3. Monthly Billing – With monthly billing, a company is invoiced on a monthly basis to ensure continual payment of claims and the funding of additional insurance products.