Funding is the means by which an employer pays for insurance coverage. Fully insured group health care requires the employer to pay a fixed premium in advance. If claims run lower, the insurer pockets the difference. With self-funding, the employer pays for actual claims—not anticipated claims—plus a fee for the carrier to administer claims. The employer typically purchases stop-loss insurance to cap its claims liability. For eight years running, health care costs have risen less for self-funded companies than for the fully insured.1
- Self-Funding Solutions
Learn about the important factors that determine when a company should choose to self-fund, and discover the self-funding options available from Great-West Healthcare.
- When to Choose Self-Funding
Find out what to look for in a carrier when considering a self-funding solution.
- Why Great-West Healthcare?
Learn about Great-West Healthcare’s self-funding experience and how our bundled approach to self-funding can help reduce a company’s health care costs.
1 Kaiser/HRET Employer Health Benefits 2005 Survey