Self Funded Insurance: Take Control of Your Company's Healthcare Costs
Are your employee healthcare costs impacting your bottom line? Conner Insurance provides expert self funded insurance coverage that gives you greater control over healthcare spending while maintaining quality benefits for your workforce. Our tailored methodology helps mid-sized businesses use self funded plans that deliver immediate and long-term financial advantages.
What is Self Funded Health Insurance?
When you choose a self funded plan with Conner Insurance, you take direct responsibility for funding employee healthcare claims rather than paying premiums to an insurance carrier. The direct responsibility puts you in control of your healthcare spending and offers substantial advantages for your business:
Understanding the Basics of Self Funded Plans
Self funded plan options involve setting aside funds to pay for actual employee healthcare claims as they occur. Your company establishes a dedicated fund from which medical expenses are paid, essentially becoming your own insurer. With Conner Insurance's guidance, you'll gain immediate financial benefits through improved cash flow and reduced administrative expenses while maintaining complete control over your health plan design.
Take control of your healthcare spending and see real savings with the practical benefits of a self funded plan for your mid-sized business.
How Self Funding Differs from Traditional Insurance
Traditional fully insured plans require fixed premium payments to an insurance company regardless of your actual claims experience. With self funded plans from Conner Insurance, you'll experience:
- Direct Cost Control: Pay only for healthcare services actually used by employees, plus administrative fees
- Eliminated Carrier Margins: Remove insurance company profit margins and premium taxes from your healthcare equation
- Federal Government Advantages: Self funded plans operate under ERISA federal regulations rather than state insurance mandates, offering greater flexibility
- Complete Data Access: Gain comprehensive claims information to make intentional decisions about your benefits program
Many companies switch from self funded vs fully insured plans to eliminate carrier markups and only pay for the healthcare their teams actually use.
Self Funded Plan Structure
When you start a self funded plan with Conner Insurance, your coverage includes:
- Administration Services: Expert claims processing, network access, and administrative support
- Stop-Loss Protection: Insurance coverage that safeguards against unexpected high-cost claims
- Plan Documentation: Customized documentation outlining your specific benefits and requirements
- Pharmacy Benefit Management: Prescription drug program management to control costs
- Provider Network Access: Connections to quality healthcare providers at negotiated rates
Build a stronger company culture with employee benefits insurance that puts your workforce first while keeping costs manageable and predictable.
Benefits of Self Funded Insurance Plans
Choosing self funded health benefit plans through Conner Insurance delivers tangible benefits for your organization:
Significant Cost Savings
Partner with Conner Insurance to implement a self funded plan that reduces your healthcare spending:
- Tax Advantages: Eliminate state premium taxes (typically 2-3%)
- Reduced Administrative Costs: Pay only for necessary administrative services
- Improved Cash Reserves: Maintain control of funds until claims are paid
- Data-Driven Decisions: Use detailed claims information to identify and address cost drivers
Based on our client experience data collected from 2020 to 2024, organizations using our self funded plans typically achieve a 15% to 20% reduction in healthcare expenses, putting substantial dollars back into their business operations.
Customizable Coverage Options
Work with Conner Insurance to design a self funded health plan specifically tailored to your workforce needs:
- Custom Benefit Design: Create plans that address your employees' specific health profiles
- Flexible Adaptation: Adjust benefits throughout the year without waiting for renewal periods
- Targeted Solutions: Incorporate specific programs for high-cost conditions affecting your population
- Innovative Care Models: Incorporate direct primary care, telemedicine, and centers of excellence
Better Cash Flow Management
Improve your company's financial position with the cash flow advantages of self funding:
- Reserve Fund Control: Maintain control of claims reserves until needed
- Pay-As-You-Go Structure: Pay for healthcare services as they're delivered rather than in advance
- Year-End Surplus Potential: Benefit directly when claims are lower than projected
- Financial Transparency: Gain detailed insight into healthcare spending patterns
Is Self Funded Health Insurance Right for Your Business?
Conner Insurance helps you determine if self funding aligns with your organization's personal circumstances:
Company Size Considerations
Our self funded health insurance is designed for mid-sized and growing businesses:
- Mid-Sized Organizations: Companies with 100+ employees typically have sufficient population to spread risk effectively
- Level-Funded Options: Smaller organizations can access self funding advantages through our level-funded programs
- Multi-Location Businesses: Standardize benefits across diverse locations while maintaining cost control
Risk Assessment Factors
Our expert advisors analyze important aspects that influence your self funded plan success:
- Workforce Demographics: Age, family status, and other population characteristics
- Claims History: Detailed analysis of historical healthcare utilization
- Industry Risk Profile: Healthcare trends specific to your business sector
- Geographic Considerations: Regional healthcare cost variations affecting your employees
Financial Requirements
Launching a self funded plan with Conner Insurance requires appropriate financial preparation:
- Claims Funding Strategy: Development of appropriate funding mechanisms
- Stop-Loss Coverage: Selection of specific and aggregate protection levels
- Reserve Management: Establishment of proper claims reserves
- Financial Reporting: Regular updates on plan performance and projections
Self Funded Group Health Plans: Implementation and Support
When you choose Conner Insurance for your self funded group health plan, you receive full service application support:
Steps to Transition
Our structured process provides a smooth transition to self funded insurance:
- Initial Assessment: Thorough review of current health plan performance and objectives
- Custom Plan Design: Development of tailored benefits based on your workforce needs
- Vendor Selection: Identification and coordination of TPAs, stop-loss carriers, and other partners
- Implementation Schedule: Detailed timeline with specific action items and responsibilities
- Communication Development: Creation of employee materials explaining the new program
Administrator Partnership Selection
Choose the right administrative partner for your self funded plan with Conner Insurance's guidance:
- Administrative Capability Evaluation: Assessment of claims processing efficiency and accuracy
- Network Analysis: Review of provider access and discounts relevant to your employee locations
- Member Support Review: Evaluation of customer service and employee assistance resources
- Technology Assessment: Analysis of reporting tools and employee self-service platforms
Employee Communication Strategy
Conner Insurance helps you develop effective employee communications that:
- Explain Plan Changes: Clear description of how the new program works
- Highlight Enhanced Benefits: Emphasis on improvements in the new plan design
- Provide Decision Support: Tools to help employees make informed healthcare choices
- Maintain Engagement: Ongoing communications to maximize program value
Conner Insurance: Your Self Funded Health Insurance Partner
For over 70 years, Conner Insurance has provided trusted insurance guidance to businesses across all 50 states. As a family-owned business now in its third generation of leadership, we understand the importance of providing sound counsel during significant business decisions like establishing a self funded program.
Conner Insurance's benefits advisors specialize in helping mid-sized organizations execute and manage successful self funded plans that control costs while protecting employee wellbeing. Our staged activation allows you to gradually incorporate self funding elements, achieving progressively greater savings at each step.
Ready to take control of your healthcare costs with a self funded plan? Contact Conner Insurance at (317) 808-7711 to speak with one of our trusted advisors and schedule your complimentary consultation today.
Frequently Asked Questions
What is self funded insurance?
Self funded health insurance is a healthcare financing arrangement where employers pay for employee medical claims directly from a dedicated fund rather than through an insurance company's premiums. This gives organizations direct control over their healthcare dollars while still providing comprehensive coverage for employees.
Self insurance can be an advantageous strategy for mid-sized companies looking to reduce healthcare costs while gaining flexibility in plan design. Data from our recent industry studies show that properly structured self funded plans typically save organizations 15% to 20% compared to traditional fully insured options.
Self funded plans can include deductibles just like traditional insurance, with the advantage that employers have complete flexibility in setting these amounts. Deductible structures in self funded plans can be customized to balance employee affordability with appropriate healthcare utilization incentives.
Self funded plans are typically less expensive than fully-insured options because they eliminate insurance carrier profit margins and state premium taxes. Organizations benefit from paying only for actual healthcare services used rather than inflated premiums based on projected costs.
The cost of self insurance varies based on the insurance company size, employee demographics, industry, and chosen benefit structure. A thorough analysis of claims history, employee population health, and stop-loss insurance requirements provides the foundation for accurate cost projections.
Other Types of Insurance
In addition to employee health benefits, we can work with you to determine the best course of action with our benefits strategy and planning services. Additionally, we offer human resource consulting and strategizing. Of course, we offer commercial insurance and personal insurance in addition to these programs, as well.
Related: Protect your company from administrative errors with employee benefits liability coverage.
Contact Us to Schedule Time With An Advisor
"*" indicates required fields
Serving Indiana and Beyond
Protect your employees, customers, and your business with Conner Insurance. We cover Carmel, Westfield, Fishers, Indianapolis, and Brownsburg, and the entire state of Indiana. Don't live in Indiana? We can write policies in all 50 U.S. states. In addition to benefits, we also offer commercial insurance, consulting, and personal insurance policies. Contact us at (317) 808-7711 to speak to an insurance advisor.
