Self Funded Health Insurance Coverage

The business pays all claims and manages risks and costs

A self-insured plan is one in which the business pays the actual claims and essentially assumes the role of the insurance carrier in terms of managing risk. Many large companies offer at least one plan that is fully self-insured because they have a large pool of covered employees and also have the cash reserves to protect against a spike in claims volume or amount.

Self funded health insurance plans tend to be higher risk for small business because unexpected claims require larger cash reserves. However, there are savings to be had over fully funded insurance

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Historically, self-insurance has been perceived as far too risky in the small business market.

  • Cash On Hand

    Small businesses typically have less cash on hand and can’t weather a dramatic increase in costs as easily.

  • Claims Data Accessibility

    Claims data is very hard to come by in small business, it can be difficult to judge if self-insuring is worth the risk because you don’t even know the risk!

  • Level of Man Power

    Small businesses also can lack the manpower in-house to actually review and process claims, so they still pay an insurance company to act as a Third Party Administrator (TPA). Though the business is paying the claim, the insurance company will actually process it accordance with the plan documents and ensure that all protocol is followed.

An Example of

Self Funded Insurance Coverage

Administrative Expenses


Premium Savings


Claims Paid


Manage Your Benefits and Risks to Reduce Costs

Our professional team of insurers have experience in Minnesota and Wisconsin and a strong grasp on insurance that meets your business or personal needs and exceeds your service expectations. Start the conversation with our team to find out how how much your small business could save.

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There are ways you could save 30% or more on your group health insurance! Fill out the form to get the conversation started.

By completing this form you agree that a licensed insurance agent may contact you by phone or email to answer any questions you have regarding Medicare Advantage, Part-D prescriptions or Medicare Supplement plans. This is a solicitation for insurance.

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