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What is Self-Funding?
Self-funding (or self-insurance) is an alternative risk-transfer strategy. Employers with self-funded plans typically put their health plan contributions (as well as employee contributions) into a designated bank account to pay for employee and dependent health claims, instead of paying a fixed premium to an insurance carrier. Catastrophic loss insurance (known as stop-loss insurance) is often purchased to provide a known maximum liability to the employer. A Third Party Administrator (TPA) usually processes the claims and oversees the administration of the plan.
Self-funded health plans enjoy many advantages over fully insured plans. Primarily, self-funded plans can be custom-designed to the unique needs and objectives of the employer. This flexibility, along with improved cash flow, maintaining control over health plan reserves, state tax advantages, avoidance of state-mandated benefits, and more personalized, attentive service, has made self-funding a popular and proven health plan financing tool.
Bridge the Best of Both!
The NAA Bridge, generally referred to as a Special Aggregate Only plan, is an attractive alternative for employers and health plan sponsors who want the advantages of self-funding, but are hesitant to sacrifice the safety of fixed premiums and limited liability provided by fully insured plans. This new, innovative approach allows employers with 25 to 200 employees the opportunity to explore the benefits of self-funding without the cash flow risk.
Feel free to contact one of our Account Executives to learn more about the benefits of self-funding or The NAA Bridge.
North America Administrators 1-800-411-3650
Danny Dugan, President / CEO – ext. 170 – Email
Bruce Thompson, Vice President of Sales – ext. 169 – Email
Scott Anderson, Marketing Representative – ext. 163 – Email
Mike Kovaleski, Marketing Representative – ext. 163 – Email