EHD Blog

5 Best Practices for Determining if Self-Funding is Right for Your Business

Posted by Kate Maher on Sep 7, 2017 11:16:01 AM

Sept 2017 Drip Benefits- Self- Funding.jpeg

In today’s business climate, managers need benefits solutions as resourceful and cutting-edge as the organizations they run. For many employers, pre-packaged full insurance health plans do not provide the greatest value to their organizations. Employers of all sizes are looking to mold their plans around the requirements of their businesses.

A growing number of U.S. employers are making the switch to self-insuring as a way to reduce costs and improve service. While self-insuring or self-funding are not appropriate options for every organization, employers considering a switch from fully funded to self-funded health plans should analyze the advantages and disadvantages before making a decision.

When deciding if self-funding is right for your organization, make sure that you consider the following best practices to ensure that your self-funding strategy is appropriate and effective:

  1. Evaluate Stop-Loss Coverage
  2. Understand the volume and nature of your employee health claims for the past five years.
  3. Analyze Cash Flow
  4. Decide how to administer the program.
  5. Decide on Coverage Goals.

Healthcare and health insurance will continue to have a significant impact on business and benefits decisions, so it’s important to regularly review your options. And that’s where we can help.

Have a question? Get an answer.  Download our White Paper, “Insight: Employee Medical Benefits- Self-funded vs. Insured.” Then learn more at or call us toll-free 1-800-544-7292. Our experienced insurance and risk management professionals would be happy to answer your questions, help you explore your options and develop a customized strategy for you and your organization.

Topics: Employee Benefits