Self-Funding with Stop Loss
When clients feel that traditional fully insured programs no longer meet their employee benefit coverage needs, they turn to self-funding as a way to gain more control over their plans and costs.
How Self-Funded Plans Work
Self-funding employee benefits means that the employer, not an insurance carrier, is responsible for paying the claims of those covered by the plan. This arrangement means that the employer takes on additional financial risk in exchange for plan design flexibility and potential savings.
Who Should Self-Fund?
Keep in mind, self-funding isn’t the right solution for every employer. To be a good candidate, the group should have stable claims experience, the financial ability to pay claims, a steady number of employees, an interest in managing claims and accepting risk, access to a carrier or TPA with self-funding expertise and a willingness and ability to buy Stop Loss coverage.
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Self-Funding and Stop Loss Insurance
For self-funded groups, offsetting financial risk is crucial. Stop Loss Insurance works to help protect the group from the potential financial impact of catastrophic claims.
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Other Helpful Resources
You can also browse these websites for self-funding and Stop Loss Insurance information.
Get Clients Set Up
Using HM Forms and Guides can help your clients work with HM and save time.
