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Traditional Employer-Sponsored Insurance vs. Self-funded Insurance

In a traditional employer-sponsored healthcare insurance plan, both the employer and employee pay monthly premiums. Employees choose plans based on their financial and healthcare needs, which means some things are covered and some aren’t. On top of that, employees often have to pay deductibles before their insurance kicks in, and that can often be thousands of dollars.

In a self Funded insurance plan, employers assume direct responsibility for the cost of the enrollee’s medical claims. So instead of sending premium payments to an insurance company, they pay for medical expenses out of pocket.

While on the surface that might sound more expensive, there are a number of benefits of self-insurance plans, including potentially saving tens of thousands of dollars each year. Plus with the additions of Stop Loss insurance, it caps the amount an employer would pay in claims. This eliminates the financial risk that could financially hurt an employer.

Top Reasons Why Self-Funded Insurance Could Be Right for You

There are several benefits both employees and employers receive from a self-funded insurance plan. These include:
Lower cost insurance premiums
Lower healthcare costs for employees
Potential cash back at the end of the year
Complete customization of benefits
Customizable stop-loss insurance to reduce risks

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