
Stop Loss
Is self-funding right for me?
When traditional health insurance no longer meets an employer’s needs, many companies turn to self-funding as a way to regain control. With self-funding, employers have full control over the plan design, administration, and finances for the health benefits they provide to their employees.
When self-funded, the employer pays for health claims as they occur. The benefits are administered by a third party administrator (TPA) or by an administrative services only (ASO) insurer. The employer can purchase Stop Loss insurance to limit its liability for catastrophic and unexpected claims.
Employers who self-fund take on the financial risk of paying their own claims in exchange for regaining control over their benefits and the opportunity for cost savings.
With a self-funded plan, employers have full control over plan design, administration, and finances of the benefits they provide to their employees. Self-funding differs from fully insured plans in several ways:
Self-funding is not right for every group. It is not a quick fix, but is part of a company’s long-term risk management strategy. The best candidates for self-funding are companies with:
Learn about the pros and cons of self-funding and how it compares to fully insured plans.
Important COVID-19 Updates
We’re here to help. At this unprecedented time, Berkley Accident and Health is ready and able to serve you and your business needs. We are fully functional in all operational areas, and we’re experiencing no interruptions in our service to you.
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