Photo of Towne Insurance Professionals Brad, Alex, and Jim.

Why Self-Funding?

Save big, choose the benefits you wish to offer, improve cash flow, and more!

Self-Funded Solutions

What is Self-Funding?

Under a fully insured health benefit plan, an insurance company assumes the financial and legal risk of loss in exchange for a fixed premium paid to the carrier by the employer. A self-funded group health plan is one in which the employer eliminates obligations to a health plan provider by assuming the financial risk of paying for their employees’ health care themselves, either from a trust or directly from corporate funds.

What Are the Advantages of a Self-Funded Solution?

  • Reduced insurance overhead costs and state premium taxes
  • More predictable / stable costs (not subject to commercial insurance market pricing)
  • Greater control of your insurance program- choose the benefits you wish to offer, from the care centers you wish to utilize
  • Flexibility in plan designs, administration and offered services
  • Customizable stop-loss insurance to reduce the risk associated with high dollar claims
  • Tailored coverages- cover gaps in traditional insurance
  •  Improved cash flow – employers do not have to pre-pay for coverage, only pay claims as they become due, allowing you to save on healthcare costs you don’t use

A chart comparing an insured plan and a self-funded plan, showing the directions of risk, governance, and funding.

What Are the Benefits of Towne Insurance’s NEW Approach to Self-Funding?

  • Fortune 500 benefits for mid-market employers (100-500+ employees)
  • 100% Transparency
  • Pass-Through Pricing
  • Care Coordination
  • Group Health captive option

What is a Group Health Captive?

It’s essentially a pool of like-minded employers, who share in the advantages of being self-insured by leveraging a single self-funded plan to impact pricing and risks. These groups of employers, forming a captive are then able to provide affordable, long-term medical benefits to their most valuable resource- the employees. 

While captive insurance programs are not new, until recently, the benefits of a group health captive were only an option for “big” businesses. Towne Insurance now offers group health captives as a creative alternative to traditional employee benefits programs. This solution offers mid-market businesses greater control over the costs associated with their employee benefit program, without the risks involved of being self-insured.

For more detailed information about the benefits of participation in a Towne Insurance group captive program, or to discuss which one is right for your organization, email us