Why Self-Funding is Right for Many Employers: As the name implies, self-funding is a mechanism for paying for health care claims in which the employer assumes responsibility for employee health care claims. Studies have shown that self-funding can save employers 25% and more. Self-funded plans can be tailored to meet the individual employer's specific needs. Self-funding enables employers to add or reduce benefits where they believe it is necessary.

The first thing to bear in mind regarding self-insurance is that it is a concept, not a product. It's a long-term decision having to do with financing employee health care benefits. The second thing is that, for many employer's, it is a concept that has helped them save thousands of dollars in health insurance premiums.