Credit: Brian Jackson/Adobe Stock
Self-funded health plans were traditionally something only large employers considered – those with at least 500 employees. But that's no longer the case. Advancements in underwriting and risk management technologies and metrics mean that smaller businesses can now realize the cost savings and improved employee satisfaction previously reserved for larger organizations.
With self-funding, unlike fully insured plans, the employer pays providers directly for employee health care claims via a third-party administrator (TPA), with what is called stop-loss insurance to protect itself from runaway costs, rather than paying a premium to an insurance company to both underwrite and administer their plan.
Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.
Your access to unlimited BenefitsPRO content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
