Should you "Self-Fund" your group health care plan?

Self-funding an employee health benefit plan is a long-term health strategy to save money
because it can provide an excellent opportunity for a company to achieve immediate savings
plus sustainable cost control. However, smaller employers may be hesitant to self-fund their health plan because they commonly perceive it as appropriate only for large companies.
Establishing the right health plan can become an integral part of the growth and success of
your company.
Smaller employers can be hesitant to self-fund a health plan because such plans are perceived as only appropriate for large employers. However, there exists new and innovative products and services specifically designed for employers with fewer than 250 employees that can make a self-funded health plan a compelling option for employers with as few as 25 employees.
This plan is called Level Funded or "Agg" only product. Individual Stop-loss insurance is purchased to protect the employer. With individual stop-loss insurance, when health claims reach a specific dollar limit in a plan year for a covered individual, the stop-loss insurance policy reimburses the employer’s health plan for claim amounts above the individual stop-loss insurance
limit. For example, if an employer has individual stop-loss insurance of $25,000 and an individual has $85,000 worth of claims, the stop-loss insurance policy would reimburse the employer’s health plan $60,000. The cost of stop-loss insurance is a monthly premium, and there are a variety of stop-loss insurance dollar amounts from which to choose. For employers with fewer than 250 employees,Pekin GPS offers stop-loss insurance with individual dollar limits.
They also deal with stop-loss carriers that reimburse the plan promptly when the stop-loss dollar limit is reached. Otherwise,your company could be responsible for covering the full amount of any excess claims until it’s reimbursed under the stop-loss insurance policy.

If claims are lower than predicted, the employer can save money directly, compared to paying the set monthly premium of a fully insured plan, while the stop-loss insurance policy puts a ceiling
on the maximum amount the employer would pay in claims.