Self-Funding 101: A Beginner’s Guide    

Health benefits are a necessary expense for employers. Rising costs have made businesses face tough choices, such as cutting benefits, shifting costs to employees, or taking the brunt of the financial hit themselves.  

Self-funding is a different way to finance health insurance. Employers don’t pay fixed premiums to an insurance company; they pay for medical claims directly. Although self-funding needs planning and financial management, it can provide greater cost savings, flexibility, and better benefits for employees.  

This guide will help employers understand:  
 
●      What self-funding is  
●      How it works  
●      The pros and cons of self-funding  
●      How to tell if self-funding is right for you  
●      The steps to successfully transition to self-funding