Self funded insurance offers plan sponsors a cost effective method for funding benefit plans. It allows you greater control of your plan design, and offers you more flexibility and savings in plan administration.
- Self insurance is a risk management method.
- The idea of self insurance is that retaining and calculating risks and paying the resulting claims or losses is less expensive than purchasing a fully insured plan from a commercial insurance company.
- Self insured plan administration is typically less expensive when compared to purchased insurance.
- All savings associated with the plan administration remain with the self insured plan, as opposed to savings retained by an insurer in a fully insured plan.