Self Insurance

Self Insurance

Employers Can Save up to 14% on Health Care Costs. Let PreferredOne Guide Your Plan into Renewed Savings.

Self-funded insurance can mean significant savings for your company. But employers often overlook this affordable health care coverage option due to:

  • Lack of clarity about the risks involved
  • A general sense your business is not big enough
  • Fear about the difficulty in switching plans
Self Insurance is Gaining Popularity

The Affordable Care Act places additional pressures on managing the cost of fully-insured plans. Additional taxes, fees and assessments along with benefit mandates create an environment that encourages the transition to self insurance. Self funding, once the exclusivity of sprawling multi-nationals, is becoming more and more common. In fact, smaller companies are seeking self insurance as a solution to escalating health care benefit cost.

Where do savings come from?

Traditional fully-insured health benefit programs incur a number of expenses that add to your cost and budget. Our experience with administering plans help us locate areas we can:

  • Eliminate fully-insured taxes and assessments
    • Eliminate the current fully-insured taxes and assessments of 3-6% of premium and avoid the Health Reform Insurance Industry Tax
  • Avoid additional cost
    • Fully-insured plans typically charge risk and contingency fees of approximately 2-4%
    • Administrative and network management fees are generally higher under fully-insured plans, typically 2-4%
  • Improve cash flow
    • Self-funded health care plans have better cash flow as the company holds and invests reserves 0.5-2%
Self Insurance Chart

Why PreferredOne Self Insurance?

  • Modest Administration Fees
  • Administrative and Benefit Design Flexibility
  • Multiple Stop-Loss Carriers, Including A+ A.M. Best Rated
  • Expect Transparent Financials and Clear Communication
  • Competitive Network Discounts and Flexible Provider Access
  • Uncompromising Service

PreferredOne Simplicty

Now small and medium sized employers have have another option in employee health benefits. Companies with over 25 employees can consider self insurance without the risk. Learn More.

For details or a proposal, contact your broker or
PreferredOne (763-847-4007/

Need Assistance?

The PreferredOne Customer Service Call Center is available between 7:00 a.m. and 7:00 p.m. CST, Monday through Friday.

Twin Cities Area:
Outside the Metro Area:
For Hearing Impaired:
763.847.4013 (TTY)

Facebook LinkedIn Twitter

Nondiscrimination Notice

Language Assistance Available

Star Tribune Top Places To Work
Member    |    Employer    |    Broker    |    Provider    |    Payor    |    Job Opportunities