Self-funding (or partially self-insuring) is a group healthcare option in-between traditional group insurance and fully self-funding your organization’s health plan.
Is Self-Funded Insurance New?
Plan sponsors and employers have been able to self-fund their medical plan for more than 30 years, made possible by the passage of the Employee Retirement Income Security Act (ERISA) of 1974 by the U.S. Congress. ERISA exempts self-funded plans from state insurance laws, including reserve requirements, mandated benefits, premium taxes, and consumer protection regulations.
Lower Costs (And Risk)
Small and large groups that partially self-fund their health insurance are able to keep their own costs down while still keeping the organization, and its staff, safe from risk.
Plans That Staff Actually Use
Organizations that partially self-fund typically find that they’re able to design a more useful plan for their staff for less than their old coverage.
100 Million+ Americans Covered
With the passing of the Patient Protection and Affordable Care Act (PPACA), the interest in self-funded insurance has never been higher. It’s estimated that 57% of all health plans in the U.S. are self-funded, covering more than 100 million Americans.
The Clear Choice in Self-Funded Insurance
The mechanisms that make self-funding successful are at the core of what Arizona Benefit Plans can help insurance professionals develop for their clients. Using a wide range of risk mitigation techniques and products, as well as having carrier relationships that have been involved in the self-funded industry since its beginnings, we deliver the strategy, product, , pricing and service platforms that can make a successful long-term self-funded strategy work for virtually any employer.