Self-Funding 101

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

12/15  Paid with run-in allowance

12/24  Paid

• 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.