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Self-Funded Plans

Risk management flow chart on a blackboardA self-funded insurance plan is a self-insurance arrangement whereby an employer provides health care benefits to employees using its own funds. The employers assumes all health risk for covered employees.

The employer is then labeled as the insurer under a self-funded insurance plan and covers all relative expenses. It is typical for an employer to purchase reinsurance to reduce the risk of catastrophic loss due to unexpected claims by employees. Reinsurance is purchased to lower the risk and thus a premium is paid at a significantly lower rate than a fully-covered plan.

Self-funded insurance plans still contain risk even with reinsurance especially in a bad year of health claims where your costs exceed the benefits of the small premiums from reinsurance. Self-funded plans require a expert financial consultation from insurance brokers certified to assess your risk and provide feasible advise.

SBI brokers want to sit down and discuss your plans for self-funded insurance plans.

Schroepfer Bauer Insurance brokers are certified to speak with you today. Call us at 1-(800)-659-5733 or request a consultation at one of our offices in Washington, MO or Union, MO. Depending on the size of your organization, our brokers can travel to you if desired.

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