Berkley Accident and Health - Employer Stop Loss, Advantages of Self Funding

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Advantages of Self Funding

One strategy many employers use to gain control over rising health care benefit costs is to self-fund their employee health benefit plan.

A self-funded plan has many advantages over a fully-insured plan, including:

Employers can maintain a single plan across all states, potentially decreasing administrative costs.
Employers have greater access to claim and behavioral data,(in a HIPAA compliant manner), which allows them to promote healthy activities and decrease costs.
Employers can assemble an ‘all-star’ team of vendors instead of being forced into the ‘one size fits all’ approach of the fully-insured market.
Employers will pay lower state premium taxes in a self funded plan.
Employers will experience better cash flow capability.
Employers can choose to eliminate or reduce some of the state mandated benefits.
Employers with a better than average risk profile often achieve additional savings.

For more information on the advantages of self- funding employee health benefit plans, visit The Society of Professional Benefit Administrators web site and/or The Self Insurance Institute of America web site.