Is Self-Funding a good fit for our group?

Consider Self-Funding if you are a group that:

• Has 100+ Employees  (but sometimes smaller) get "a complimentary evaluation!" or 50+ for dental & vision
• Has a favorable age distribution
  
  • Less than 35% over 50
• Desires extreme flexibility
• Is looking for long-term (3 to 5 years minimum) cost management
• Has a growing or stable work force
• Is financially stable
• Is a multi-state employer
• Is able to provide strong HR involvement
• Has an identified need for a customized benefit plan
• Currently offers an HMO or PPO

Explore all your self-funding alternatives including:

• High Deductible Plans
• Minimum Premium
• Fully Self Funded (no reinsurance)
• Partially Self Funded (with reinsurance)
• ASO Arrangements with Carriers

Be prepared to:

• Learn about and manage the risk management involved in self-funding
• Take legal and fiduciary responsibility for the plan
• Purchase reinsurance or stop loss insurance against large losses
• Enjoy plan design flexibility
• Comply with Federal regulations (usually ERISA; unless PHSA applies)
• Live with some variations in cash flow
  
  • Varies month-to-month (But can be controlled)
• Commit to focused HR time and involvement during set-up
• Spend at least one hour learning about self-funding

1. 90% of Brokers are not educated on self-funding
2. Many Brokers are afraid of it and don't really understand it
3. It is more work and takes more time for the Broker
4. Mis-information is rampant

"We've been implementing self-funded plans for our clients for 26 years, and not one client has ever gone back to a traditional fully insured plan!"

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