Self Funded Plans' Secret Stop Loss Insurance Wins

Benefits of Self-Funded Plans with Stop-Loss Insurance

Employers who choose self-funded plans with stop-loss insurance enjoy several benefits. Firstly, there is the potential for significant cost savings. By only paying for the healthcare services actually used by employees, companies can avoid the high premiums associated with fully insured plans. Additionally, stop-loss insurance provides a safety net, ensuring that the company's financial exposure is limited².

Moreover, self-funded plans offer greater flexibility. Employers can customize their health benefits to better meet the needs of their workforce, which can lead to improved employee satisfaction and retention. This customization can include wellness programs, preventive care, and other initiatives tailored to the specific health profiles of employees³.

Real-World Examples and Data

Many companies have successfully implemented self-funded plans with stop-loss insurance, resulting in substantial savings. For instance, a mid-sized company reported saving over 20% on their healthcare costs after switching to a self-funded model with stop-loss insurance. This was achieved through careful management of claims and the strategic use of stop-loss coverage to mitigate high-cost incidents⁴.