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Sunday , November , 19 2017
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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

           15/12                          Paid with run-in allowance

           24/12                          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.