One of the key advantages of our self-funded health care programs is our team of actuarial partners that are focused solely on risk management, optimal pricing of your plan and driving the renewal process and rates. L.R. Webber uses Contribution Health to help with the actuarial calculations and stop loss negotiation services on behalf of our consortium group participants.
The actuaries at Contribution Health negotiate a sensible risk management strategy for your self-funded benefit plan by addressing the core principle of appropriate spread of risk. Does your current insurance company have a risk management philosophy? Sure. Their philosophy is to manage their risk, not the employer’s. They are overloaded with underwriters to make sure they screen for groups that don’t threaten company profits and offer their best prices to groups most likely not to need insurance. When a group of employees is no longer a good risk for the insurance company, watch out, the employer won’t be treated well.
Their philosophy is to manage the self-funded risk of employers. What the employer needs is entirely different from what the insurance company needs. Employers need insurance when they need it. Employers need stable year-to-year costs. When there is an occasional bad year or catastrophic claim, employers ought to be treated fairly and with respect and be in a risk pool that is willing to share the risk.
Rick Burd is the chief actuary at Contribution Health. He has 40 years of diversified experience in both insured and self-funded business models. Mr. Burd’s expertise is in the area of the mathematics and underwriting of group insurance programs, including pricing, trend analysis, claim modeling and projections, demographics, credibility and statistical concepts. He is a Fellow of the Society of Actuaries (FSA) and a Member of the American Academy of Actuaries (MAAA). As an insurance company executive, he has managed underwriting, product development, and actuarial departments, and has served as Chief Actuary of a regional group insurance company.
He specializes in small and mid-size group rating and underwriting and has worked in the brokerage sector, representing hundreds of employers in their purchase of stop loss programs. Using his prior expertise in small group risk management, particular success was achieved developing unique methodologies that allowed transition of small fully insured employers into self-funded risk pools. Mr. Burd is widely known in stop loss circles and has been published in the Self Insurer, the magazine of the Self Insurance Institute of America.
For more information about Contribution Health, you can find them on the web at http://contributionhealth.com.