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Self-funding with stop-loss coverage for employer group health insurance is an attractive alternative to the fully insured market for cost-conscious employers. Self-Funding is one of the most effective ways employers can control the rising costs of health care coverage. Self-funded employers have flexibility in making key decisions on benefits, administration, and funding. Stop-loss coverage can be purchased to limit liability.
Self-funding typically has an immediate savings of approximately 8–12% through reduced administrative costs. More significant savings are gained through the reduction or avoidance of claim costs, since claim costs become the responsibility of the employer in a self-funded arrangement.
From 1999–2009, the number of companies migrating to self-funding has increased every year.
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Percentage of Covered Workers in Partially or Completely Self-Funded Plans
by Firm Size, 2009*
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| Firms with 200–999 employees |
48% |
| Firms with 1,000–4,999 employees |
80% |
| Firms with 5,000 or more employees |
88% |
| All Small Firms (3–199 employees) |
15% |
| All Large Firms (200 or more employees) |
77% |
* Estimate is statistically different from estimate for all other firms not in the indicated size.
Source: Kaiser/HRET Survey of Employer-Sponsored Health Benefits, 2009.
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We would like to register you and your management team for an educational webcast presentation on self-funding healthcare benefits.
In 30 minutes, you will learn:
- What self-funding is and how it works.
- The pros and cons of self-funding.
- How to determine if self-funded programs are right for your business.
- Ways that other WNY companies are benefiting from self-funded programs.
We will contact you to schedule a date and time for your webcast.
* required fields
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