The main objective of self-funding is to improve a company’s profitability by reducing insurance premium costs A well-designed and managed self-funded health insurance plan can result in a savings of up to 40% of total costs when compared to fully-funded traditional health insurance plans.

Unlike traditional health insurance plans which in effect pre-pay potential claims, a self-funded program pays out claims as services are rendered. This allows for a better cash flow for your organization in addition to increased bottom line savings.

Due to the fact that self-funded plans are exempt from state premium taxes, dollars that would normally be paid in tax are retained by your organization.

Having a diligent and competent claims administration company like Leading Edge Administrators managing your self-funded plan results in lower overall claims experience. Through thorough Fraud, Waste, Abuse, and Errors auditing, unnecessary expenses will be significantly reduced. The various other cost containment and claim mitigation strategies employed by LEA will further reduce the total claims experience. The net effect of these actions result in lower expenses during the policy year and lower premiums on future policies due to better loss experience history.