Idaho Self-Funded Insurance Carriers

Most of the traditional group health insurance carriers in Idaho offer self-funded health insurance policies as well, such as Blue Cross of Idaho, PacificSource, Regence Blue Shield and SelectHealth. Some companies may require 50 or more full-time employees in order to offer a self-funded medical plan. 

In addition to the well-known medical insurance companies doing business in Idaho, Allstate Benefits (formerly National General) and Roundstone Insurance also offer plans within the state.

SELF-FUNDED HEALTH INSURANCE

​If your company has at least 20 employees or more you should consider self-funding as an effective long-term strategy for controlling the cost of health insurance. 

Self-funding is a hybrid between being self-insured and fully-funded. If we look at large employers such as General Electric, Ford Motor Company and others, it is easy to understand how self-funding works well for these big employers. They have the financial means pay for huge claims. However if you have a smaller company you are naturally concerned about the potential liability for unexpected losses. After all, medical insurance claims can add up to hundreds of thousands of dollars and even reach into the millions. That would bankrupt a small company. Self-funded health plans have built in protection against large claims and guarantee premiums.

Three Components of a Self-Funded Health Plan

In any health plan, fully-insured or self-funded, there are three components, namely administration expenses to pay for clerical responsibilities and sales costs; claims funding to pay for small medical expenses; and a stop-loss insurance to cover the catastrophic risks. Fully-insured policies are bundled, while self-funded plans are unbundled, meaning all of the three components are itemized. Stop-loss insurance allows even small employers to save money using self-funding.