Self Funding
 
   
   
   
In an effort to control health care expenses, the overwhelming majority of today's employers self-fund some portion of their healthcare plans. Self-funding allows an employer to customize their plan to meet specific goals, from maximizing participant satisfaction to accruing significant cost savings.

In the concept of self-funding, an employer assumes direct responsibility for financing their health care plan. Stop-loss coverage is available for protection from exceeding pre-determined individual and aggregate total plan costs.

Usually, a self-funded plan is less expensive than a fully insured plan. In this plan, an employer pays a premium to an insurance company to cover potential employee claim costs, insurance company overhead commissions, reserves, various risk charges and taxes. By taking control of the plan's assets and retaining them until they are needed to pay claims, self-funding gives an employer the ability to invest prudently while also reducing or eliminating the insurance company retention charges, commission allowances, profit margins and, in most states, premium taxes.

The result is a healthcare plan that gives control to the employer by allowing complete flexibility in benefit design, fixed costs and risk retention.

Since Lyncpay integrates employee benefit products with administrative services as a solution to streamlining employer benefit processes, our clients have a complete resource to support their self-funded plan.
   
   
   
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