Good Candidates for Self-Funding Health Plans

Here today's topic is am I a good candidate for self-funding? If you want an answer that question you really need to find a self-funded expert they're going to evaluate self-funding on a number of different factors. Here are some of the things an expert would consider number one the number of employees enrolled in the health plan. Size does matter for example in certain States? They're going to have different requirements on how many employees you must have before you can actually self Fund in the state of Illinois. It's 10 in addition to that stop loss carriers may only under write down to a certain number of employees very common for 50 or 100 but there are plenty that go below that number two is data in the absence of data and insurance carrier is simply going to add margin or decline to quote access to data is key in determining if self-funding is viable for you. Don't worry if you think you can't get access to your data because there are creative ways to get it that you probably haven't heard of the third is cash flow an employer must have some level of tolerance for month to month cash flow variations if they are considering being self-funded. That tolerance is employers specific but can be significantly mitigated if set up the right way from the start the fourth is tolerance for change. Lawrence for change is directly tied to how much you can control your risk as an employer the higher tolerance for change the more you can control your risk. Don't be fooled though change does not always mean something negative. There are plenty of things you can do in a self-funded environment that are a positive change for members. My advice to you is if you're considering self funding find yourself an expert and if the only answer you're getting right now is you are too small to self fun. You probably do not have an expert.