Why Self-Funding

Employers are focused on providing the quality benefits that they know their employees expect.
 
But how do employers accomplish this against a backdrop of increasing healthcare costs and a stubbornly fickle healthcare marketplace? Increasingly, the solution is self-funding. In fact, a 2017 survey by the Kaiser Family Foundation found that 60 percent of covered workers are enrolled in a self-funded plan, compared to 49 percent and 54 percent, respectively, in 2000 and 2005.
 
In a self-funded health benefit plan (also sometimes called self-insurance), the employer—and not an insurance company—is responsible for the cost of providing health benefits to employees. Employers usually enter into a contract for stop-loss insurance which provides security by way of a financial backstop in the event of larger than expected healthcare claims.

Cost Savings and Control

Increased cost savings and control are the biggest advantages of self-funding. With a self-funded health benefit plan, employers get:
  • Greater opportunities for cost containment and medical spending transparency
  • Greater control over health plan reserves
  • Flexibility to customize benefit offerings
  • Ownership of claims data
  • Greater opportunity to strategically promote a healthier employee culture
For more than 40 years, CoreSource has focused exclusively on partnering with self-funded employers to craft integrated, flexible, and tailored plans that meet business needs and support employees. Check out our Self-Funding 101 Infographic to learn more.
Curious if self-funding is the right option for your business? Contact us today.