Is self-funding right for your business?

Four key indicators to help you decide

Providing health coverage to your employees can feel like a balancing act — you want affordability without compromising on care. If you’ve assumed self-funding is only for large employers, it may be time to take another look.

Today’s self-funded health plans are more accessible and flexible than ever. With the right conditions in place, many businesses are discovering that self-funding can offer greater control, cost transparency and potential long-term savings.

So how do you know if your business is ready? Here are four key indicators that self-funding might make sense for you.

1. You have a healthy, stable workforce

Self-funded plans work best when your employees’ health care usage is relatively predictable.

Signs your business might be a good fit:

• Low employee turnover
• A healthy workforce
• Few high-cost claims in recent years
• Consistent health spending

You don’t need a perfect record, just reliable data and a stable baseline. At Blue Cross and Blue Shield of Kansas (BCBSKS), we can help you assess your claims history and risk profile so you can make an informed decision with real numbers, not guesswork.

2. You’re looking for cost control and flexibility

Fully-insured plans offer predictability and simplicity. Your monthly premium is fixed, and the insurance carrier takes on the financial risk. That can be the right choice for many employers. 

For employers looking for more control, a self-funded plan offers added flexibility: 

• You pay for the care your employees actually use.
• You see exactly where your dollars are going through regular claims reports.
• You can identify trends early and make data-driven adjustments.
• You keep the savings in years when claims are lower than expected.

With stop-loss insurance in place, you can balance the flexibility with important safeguards to protect your business from catastrophic or unusually high claims. 

3. You want more choices for your workforce

Benefits matter, and self-funding gives you flexibility to choose a plan your employees truly value. Whether it’s enhanced mental health benefits or wellness incentives, self-funding allows you to design a benefits package that works for your team and your bottom line.

With BCBSKS, you can:

• Choose a plan that fits your company’s culture and goals
• Invest in services that improve employee well-being and retention

4. You have the right partner to support you

Self-funding can feel complex, but you don’t have to go it alone. With the right partner, you gain not only flexibility, but confidence in your decision-making.

At BCBSKS, we walk you through the entire process:

• Review your historical claims and risk data
• Recommend and arrange stop-loss insurance
• Handle claims processing and member support
• Manage compliance and regulatory reporting

Our bundled approach means we’re more than just a claims processor. We’re a Kansas-based partner who understands the unique challenges and opportunities employers of all sizes face – from small businesses to large organizations.

Bottom line: If you have a relatively healthy, stable workforce and want more insight, control and potential savings, self-funding could be a smart move. With the right protections and a trusted partner, you can gain flexibility and cost control without taking on unnecessary risk.

Find out if self-funding is the right fit for your business. At BCBSKS, we specialize in helping Kansas employers find the right solution for their team and budget. We’ll help you understand the financials, review your group’s health trends and give you the clarity you need to make an informed decision. To get the conversation started, talk with your Blue Cross representative today.