Self-funded health benefits are not just for big companies anymore.

If you have 10 - 200 covered employees and are on a fully-insured health plan, self-funded health plans may offer your company a way to avoid the high costs and restrictions of fully insured plans.

The drawbacks to a fully insured approach to medical or other benefits planning are threefold:

• Insured plan designs remain generally inflexible
• Effective cost containment programs are not always available
• Insured plans consume compensation dollars that may be better spent elsewhere

The advantages to self-funding are simple:

• Cost control
• Cash flow improvement
• Plan design flexibility

With self-funding, an employer pays, not anticipated claims, but actual claims, along with costs to administer benefits. Rather than pay premiums on a pay as you go basis, self-funding allows a company to pay claims as they are incurred. When claims are lower than forecast, the savings belongs to the company.

Stop-loss insurance, designed to protect employers from catastrophic losses, is provided with virtually all self-funded health plans.

To learn more about how self-funding might work for you, click on the links below:

• A visual over-view of the self-funding concept
• How Self-Funding Works
• Advantages of Self-Funding
• Disadvantages of Self-Funding
• Specific Stop-Loss Coverage
• Aggregate Stop-Loss Coverage
• Self-Funding: Questions & Answers

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