Self-Funded Plans

Administrative services contract options

Self-Funded Plans serve companies with more than 200 employees.

Would you like to manage your cash flow better?

Want more control over health care costs?

Are you interested in or already enrolled in one of our wellness plans, like Healthy Blue Achieve PPOSM or BCN Healthy Blue Living HMOSM?

Do you have wellness programs for employees (such as walking, weight loss or smoking cessation)?

If you answered yes to any of these questions, a self-funded group health insurance plan might be right for you.

What's a self-funded plan?

Your company provides health benefits to your employees with your own funds. Some of the advantages include:

  • You can customize your employees’ health benefits.
  • Fewer state regulations.
  • Potentially lower costs for you and your employees.
  • Pay as you go or by claim projections made weekly or monthly.
  • Plan payouts are based on your group’s claims experience, not a pooled or community group.
  • More detailed reports about how your health care dollars are being spent.

Here's a comparison between self-funded and fully-insured plans.

Self-funded plans Fully-insured plans
An administrative service company collects from your company then pays doctors and hospitals for claims. Your health insurance company pays doctors and hospitals for claims.
You pay the administrative service company a fee to manage your self-funded program.
You pay your health insurance company a monthly premium for each employee contract.
Claims cost can vary from week to week. You can cap your liability with stop-loss insurance to protect against excess risk.
You pay the same monthly premium no matter what your employees' individual claims are.

You can turn to Blue Cross Blue Shield of Michigan and Blue Care Network for self-funded plans. For a fee, our administrative service companies process your claims and handle other tasks for you. You can expect the same programs, extensive networks, level of service and experience you'd get with our fully-insured plans. Interested? Connect with an agent to learn more.