Popularity of Self-Funding Health Insurance Continues to Rise [Video]

The concept of pooling risk among like-minded businesses, outside of the traditional insurance marketplace, has been around for decades. By pooling healthcare risks, employers achieve greater stability and predictability in healthcare costs.  Which, in turn, allows them to continue offering a robust benefit package to attract and retain employees.

Self-funding health insurance is a common practice for many large employers, but it can have catastrophic consequences for smaller employers if not implemented properly.  Group self-funding overcomes these challenges and, in most instances, is less risky than a fully insured program.

Rising Healthcare Costs Continue to Challenge Employers

Rising healthcare costs persist as a significant challenge for employers across all industries.  There are several factors that contribute to this ongoing issue such as:

Medical Inflation: Healthcare costs consistently outpace general inflation rates due to factors such as advancements in medical technology, rising drug prices, and increased demand for healthcare services.

Chronic Diseases: The prevalence of chronic conditions such as diabetes, heart disease, …