Health care costs are exploding, seemingly shattering any previous notions of affordability. The proof? A staggering 60% of large U.S. employers are now projected to self-fund their health plans, marking a 33% jump in just five years. 

My travels across our sales territories this year have confirmed this seismic shift. In large cities once hesitant to adopt self-funding in the mid-market, employers as small as 200 lives are now taking the plunge. It's clear that traditional health insurance models are buckling under the pressure and this massive shift presents a new set of challenges for benefits consultants:

1. Managing an overwhelming number of point solutions tailored to the unique needs of each client
2. Mounting pressure to adopt more creative vendor strategies

Self-funding offers employers tighter control over cash flow, enhanced data transparency, and flexibility to incorporate more creative program offerings.

This creativity comes via third-party point solutions designed to reduce health care costs and improve health outcomes through tailored intervention and specialized care for a specific health condition (e.g., diabetes, mental health,etc.). As a result, the point solution marketplace has exploded in the past several years as more employers adopt them into their strategy.