Self-Funded Health Plans
What is a Self-Funded Health Plan?
A self-funded health plan is an alternative to traditional group insurance where your organization takes direct control over healthcare benefits for your team.
Instead of paying fixed monthly premiums to an insurance carrier, your facility sets aside funds to pay for employees’ healthcare claims as they arise.
This approach can provide greater flexibility, transparency, and long-term savings, especially for healthcare and senior living organizations that understand the importance of balancing costs with high-quality employee benefits.
Why Healthcare & Senior Living Organizations Choose Self-Funding
Your employees are the backbone of your operation. Attracting and retaining dedicated caregivers, nurses, and support staff requires offering competitive benefits. Self-funding allows you to:
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Gain More Control – Customize plan designs to match the unique needs of your workforce..
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Reduce Costs Over Time – Avoid paying large insurer profits and overhead; keep the savings when claims are lower than expected.
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Improve Transparency – Access detailed claims data to identify cost drivers and manage health trends in your team.
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Flexibility in Coverage – Include benefits often excluded from fully insured plans, such as mental health resources, wellness programs, or telemedicine.
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Cash Flow Advantage – Unlike fixed premiums, funds are only paid when claims occur.
How It Works
- Plan Design – Your organization, with guidance from our experts, designs the benefit plan.
- Funding – The employer allocates money into a dedicated health claims fund.
- Administration – A third-party administrator (TPA) manages claims processing and compliance.
- Stop-Loss Insurance – Protects your organization from catastrophic claims by setting a cap on maximum exposure.
Is Self-Funding Right for Your Organization?
Self-funding works best for healthcare and senior living organizations with:- 50 or more employees (though smaller groups can participate with the right structure).
- A commitment to employee wellness and preventive care.
- Leadership willing to engage in data-driven decision making.
Partner With Experts in Healthcare Risk & Insurance
Self-funding can feel complex, but the right partner makes all the difference. At Homewood Insurance, we specialize in helping healthcare and senior living organizations transition to self-funded health plans. From evaluating feasibility to implementing stop-loss protections, we’ll guide you every step of the way..
Speak with an Insurance Professional
Call 216-502-4967 or
Fill Out the Form
Michael Richards
Michael specializes in setting up Self-Funded Health Plans. You can call him or fill out the form and he will get your message directly.