Infographic: The Savings Potential of Self-Funding

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March 1st, 2013

Self-funded plans are able to take advantage of significant cost savings, flexible health plan design, increased cash flow and choice in administration.

Employers who choose to self-fund have the option of either purchasing ASO services from an insurance company or hiring a TPA to administer the health plan on their behalf. TPAs typically offer the most flexibility in plan design and a higher level of cost savings through careful selection of benefits that best fit the company’s needs. Self-funded employers have the ability to choose the right amount and type of stop-loss insurance to limit their financial risk and can customize provider network to better meet the needs of their workforce.

Take a look at the infographic below for a comparison of the required components, cost and savings of fully insured health plans and two types of self-funded health plan options.

self funding savings


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