Health Insurers Anticipate Increase In Self-Funding By U.S. Employers

Health insurance executives expect U.S. employers to increasingly self-fund their group health insurance plans as a result of the Patient Protection and Affordable Care Act (ACA), according to research from health care solutions provider Munich Health North America. Among those surveyed, 82 percent have experienced a growing level of interest among employers in self-funding their group health insurance plans over the past 12 months, with 32 percent stating that interest has increased “significantly.”

“The trend towards self-funding stems from employers’ desire to maintain a level of flexibility and control in the design and financing of their employees’ health benefits,” said Richard Phillips, president of Munich Health North America’s reinsurance division. “A properly designed self-funded health plan can allow a company to directly reap the benefits of their cost containment and wellness activities as opposed to having to pay a monthly premium based on an arbitrary set of rating restrictions. As companies struggle with the growing cost of providing quality benefits, we expect self-funding to continue to grow in popularity.”

Health insurance organizations expect to see growth in their self-funded or Administrative Services Only (ASO) portfolios as a result of this trend towards self-funding. Of those surveyed, 69 percent plan on growing their self-funding or ASO portfolios over the next year.

The survey contains responses from 326 executives representing health plans, HMOs, and disease management firms, as well as health insurance brokers and agents. For more information, visit

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