FAQ

17. What are the advantages of Self-Funding?
     

    1. Elimination of most premium tax.  In most states, there is no premium tax for self-funded claim fund; thus, an immediate savings equal to the amount of the premium tax (approximately 2% to 3%) is realized.
        

    2. Lower cost of operation.  Employers frequently find that administrative costs for self-funded program through a professional Third Party Administrator (TPA) are lower than those being charged by their previous insurance carrier.
        

    3. Carrier profit margin and risk charge eliminated.  The profit margin and risk charge of an insurance carrier are eliminated for the bulk of the plan.
        

    4. Effective claim processing.  The TPA’s success depends upon providing accurate, controlled claim processing for each employer.
        

    5. Cost and utilization controls.  The TPA may offer a second surgical opinion program, an outpatient surgical program, a hospital bill audit program, a large case management program, access to a preferred provider network (PPO) and other programs through a variety of sources, rather than the employer being able to use only the insurance company’s in-house program.
        

    6. Cash flow benefit.  The employer’s cash flow is improved when money formerly held by the insurance carrier in the form of various reserves, such as for unreported claims and pending claims, is freed for use by the employer.
        

    7. Return on investment for reserves.  Interest on reserves established by the employer remains under the employer’s control.
        

    8. Control of plan design.  The self-funded employer has flexibility in the original plan design.  The employer may also redesign the plan to eliminate plan abuses if they are discovered.
        

    9. Mandatory benefits avoided.  State regulations mandating costly benefits are avoided because self-funded programs are subject to ERISA.
        

    10. Administration tailored to the employer’s needs.  The employer usually has a choice of third-party administrators, each of whom is interested in providing the employer with flexible services to meet the employer’s needs.
         

    11. Risk management effectiveness through Stop Loss insurance.  The employer may choose the amount of risk to retain and the amount to be covered by stop loss coverage.  An insurance company sets pooling levels allowing little flexibility.
         

Q.  Where do I submit premium payments?

a. Contact BP Inc. directly for remittance instructions
 

Q.  How do I submit claims for reimbursement? 

a. Claims are sent either electronically to bpiclaims@bpire.com or to: 

BP Inc.
Attention: Claims
6160 Summit Drive, Suite 345
Brooklyn Center, MN  55430

Please refer to our Claim Filing Instructions.