As health care costs continue their steady climb upward (currently expected to balloon 7% in 2024, according to a new report by PwC), employers are increasingly considering the switch from fully insured to self-funded plans. It's an effective strategy for companies looking to manage costs, have more insight into their expenses and offer more affordable plans that make sense for their workforce.

As you may know, employers considering the move are in good company: In 2022, 65% of covered workers in small firms were in a plan that is either self-funded or level-funded (a huge jump from 24% in 2019). Still, despite the many benefits of moving to self-funding, you probably hear from clients and prospects who are hesitant to make the move. Some think it sounds too risky. (It doesn't have to be.) Some think their company isn't large enough. (Chances are, it probably is.) And change can be risky. (Running a business is risky, but taking charge of their health plan is often much less risky than expected.)

Companies weighing the move to self-funding may want to consider a midway approach – the level-funded plan.