Determining if Self-Funding is Right For You

In contrast to a fully insured plan where the cost is the total of all premiums paid, the cost of a self-funded plan is the total of administrative expenses, stop-loss premiums, and the claims that will be paid by the plan less stop-loss insurance reimbursements. A savings will result if total plan costs (claims plus fixed costs) are below the insurance premiums charged for comparable coverage.

We can help determine whether self-funding is appropriate by reviewing a current employee census, premium rate history, and the costs and parameters of your current plan. Most importantly, analyzing these items will help us evaluate all the alternative strategies available, including consumer-directed health plan options and cost management strategies. We will work with you to determine proper levels of coverage and all plan parameters.

It is easy to obtain a Self-Funding proposal from BPA. Simply call us or send us an e-mail today.

Click here to review common misconceptions about self-funding.

To learn more about self funded health benefit plans, click here. (link to Self Funding video or brochure)