Summary
This white paper discusses self-funding health plans and their implications for employers of various sizes. It outlines the increasing trend of small companies enrolling in self-funded plans, highlighting that in 2013, 61 percent of covered employees were in such plans, with small companies showing a gradual increase in enrollment. The document details the advantages of self-funding, including financial and administrative control, improved cash flow, and plan flexibility. It explains how self-funded plans allow companies to manage healthcare costs more effectively and tailor benefits to employee needs. The paper also addresses challenges small and mid-sized employers may face when considering self-funding, such as financial risk and resource limitations. It emphasizes the importance of risk management strategies and the role of stop loss coverage in mitigating potential financial exposure. Overall, the white paper serves as a comprehensive guide for employers evaluating self-funding as a viable health plan option.
