Self-funding is an alternative to paying fixed premiums for group health insurance. Typical plans can include coverage for medical, dental, vision or short-term disability. Self-funding gives the employer the ability to tailor coverage for its employees. The employer only pays for actual employee claims, avoiding the fees and overhead charged by insurance companies.
12/12 Incurred and paid in contract period
12/15 Paid with run-out allowance
15/12 Paid with run-in allowance
- Improved Cash Flow.
- No "pre-payment" for coverage's.
- Lower claim and administration costs.
- Easier plan customization.
- Greater choice in provider networks.
- Regulated under Federal (ERISA, HIPPA, COBRA, etc.) and not state law. Avoid costly state-mandated benefits.
- Not subject to state health insurance premium taxes on claim amounts.
Self-funding is available to groups who have more than 25 insured employee lives. We also offer Fully-Insured quotes for those groups that are under 25 insured employee lives.