What is Self-Funding?
Instead of spending money on a costly fully-insured benefits package, self-funding allows employers to purchase administrative services from an outside provider to manage the benefits plan and fund their claims with their own money. Where a traditional insurance company makes a substantial profit if an employer has a great claims year, a self-insured plan allows the employer to keep that money. If an employer has a bad plan year, not to worry, medical stop loss (umbrella) insurance for self-insured employer plans provides protection and limits the risk to the plan for large claims.
Why Should My Organization Consider Self-Funding?
Rather than paying an insurance carrier non-refundable premiums, a self-funded plan allows employers to manage the claims as costs and expenses. Self-funding offers employers:
- The freedom to customize health plans
- Elimination of most premium taxes
- Potential for savings
- Access to data to make informed decisions
- Lower operation costs
- Keep carrier profits, margins, and reserves
- A healthier bottom line
Once a self-funded plan is in place, most organizations will notice little difference in the way it operates because PBA does all the administrative work while delivering personalized customer support and intuitive tools.
Our clients benefit from a level of freedom and flexibility simply not available with traditional fully-insured plans.