Self-funding is, by far, the largest type of health employee benefits.

It sometimes has different marketing names, such as ASO, partially-self-funded, and sometimes the marketing package makes it hard to determine its precise legal status, such as some minimum-premium and experience-rated. However, under law, the cute marketing names fade away, and a plan is either insured…or self-funded.

The marketing names confuse statistics of market share, but when applying the strict legal definition of self-funding, our experience would say that about 70% – 75% of people in employee benefit health plans are using self-funding. This represents a huge growth in the small-to-medium size market of corporations as well as phenomenal growth among state & local government employment and religious organization workers.

Why the success & market dominance?