Disadvantages of Self Funding

Self funding health insurance is not appropriate for every employer. Stability, low turnover, and a favorable claims experience under a fully insured plan are important in any event, but more so with a smaller employer.

To be effective in realizing the advantages of self funding, the employer must be disciplined about eligibility of benefits, actual claim payments, and expenses. Self funding may not reduce costs every year — or at all. In addition, the employer must be willing to deal with these potential disadvantages:

 Viehdorfer & Associates     Benefits Design For Employers and Individuals in Colorado and Wyoming
Health Insurance and Benefits