Self-Funding My Mid-Size Company’s Health Insurance, Is it worth it?

Health Insurance began during the Great Depression Era because hospitals and physicians needed a way to guarantee payment. However, private health insurance through employers grew rapidly from 1940 to 1960 due to several favorable laws. At the beginning of World War II only 7% of the United States population had health insurance. By 1960 that number had increased to 70%. Plans were at first community-rated and soon gave way to experience-rating (i.e., rates based on claims experience). The concept of retaining the insurance risk and self-funding the payment of claims soon became a way to manage costs. So, if the concept of self-insurance has been around for decades, why such a buzz about it lately?

BDO USA’s Gregg Mills shares his perspective on some of the key decision factors between being fully insured and being self-insured. 

This article was originally published by Precision Benefits Group.