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Small businesses are trying to minimize the new cost relating to the federal healthcare law. One strategy that is being investigated is self-insure/ self-funded their healthcare. Most large employers already self-insure, but small businesses now have an opportunity to do the same.  Health insurance companies and TPA’s, which pay claims, are now offering their service to companies with as few as 10 employees. This strategy lets small employers avoid new requirements under the law that call for traditional small group plans to include richer benefits. This can save groups by avoiding changes to pricing rules that could increase costs for groups of healthy workers.  There are risks involved because one or two large claims have a much greater impact on a small group. To minimize this risk, you need the proper stop-loss insurance and more control over benefits to help lower cost.


Benefit to Employer:

  • Lower cost of healthcare

  • More control over cost

  • Motivates employees to use less costly healthcare

Benefit to Employees:

  • Lower premium

  • Customize plans to suit all employees

  •  Better coverage for less money

Self-Funding / Self-Insure

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