Self-funding gives you the flexibility to design a plan that is best suited to meet your company'sneeds.Andunliketraditionalinsuranceplansthatchargeafixedannualrateforclaims,self-fundedplansarebilledmonthly,andonlyfortheservicesused.Thissavesyoufromtheextracostofpayingforsomethingyourcompanymightnotuseandletsyoucontinuouslyevaluateyourcompany’splan,maximizingflexibilityandmitigatingrisktoyourcompany's bottom line.
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While self-funding protects you from paying higher month-to-month premiums for unutilized services, because self-funding bills per-claim, it does leave you susceptible to a catastrophic claim. To protect you against having to cover an excessive amount due to a catastrophic claim, self-funded plans give you the option to purchase stop-loss insurance.