Is Self-Funding a Risk Worth Taking?

Self-funding your company’s health insurance can feel intimidating, with risks and uncertainties that may cause hesitation. But what if the real risk lies in sticking with fully insured plans?

While the traditional narrative paints self-funding as risky, especially for small—to mid-sized businesses, the reality is changing. Since the passage of the Affordable Care Act and with significant advancements in risk management strategies, self-funding now offers control, transparency, and substantial savings.

Fully Insured Plans: The Hidden Risks

• Lack of Control: You have little say over plan design or claims data with fully insured plans. You’re at the mercy of the carrier’s decisions without any transparency into costs.
• Fixed Premiums with Hidden Costs: Those "fixed" premiums often mask high administrative fees and insurer profits.
• Unpredictable Renewals: Fully insured plans come with the risk of unexpected premium hikes, sometimes as high as 20 -30% annually.

Why Self-Funding?

• Control: Tailor your health plan to meet your employees’ needs.
• Transparency: Gain access to detailed claims data for better cost management.
• Savings: Eliminate insurer profit margins and keep unused funds.

At Remedy Advisors, we’ve perfected a self-funding model that mitigates risk and maximizes savings. For example, we’ve helped a 127-employee group reduce costs by $400,000 in just two years. Another client with 50 employees saved $100,000 in the first year alone.

Ready to take control of your health benefits? Let’s explore how self-funding can transform your business. Schedule a free 30-minute discovery call with me today.