Employers pay a fixed monthly cost for health expenses—calculated to cover the expected average plan costs each month.

This offers a consistent monthly outlay for budgeting purposes. The employer retains 100% of any unused balance that remains at the end of the year. And while cost overruns are possible, stop loss insurance helps mitigate this risk.

This self-funding model provides the monthly payment stability of a fully-insured plan and the savings opportunities of a self-funded plan.