--- title: The Four Advantages of Self-Funding description: More public sector organizations are moving to self-funded health plans in search of more control and lower costs. The four advantages of self-funding include plan design freedom, tax savings, lower administrative costs, and better cash flow. image: https://blog.nisbenefits.com/hubfs/blog-headers/self-fund%20B.jpg --- ![The Four Advantages of Self-Funding](https://blog.nisbenefits.com/hubfs/blog-headers/self-fund%20B.jpg) # The Four Advantages of Self-Funding - Home - [Employee Benefit News for School, City and County Employers](https://blog.nisbenefits.com) - The Four Advantages of Self-Funding [ Erin Woulfe ](https://blog.nisbenefits.com/author/erin-woulfe) 03/12/2018 [ Health Insurance Solutions](https://blog.nisbenefits.com/topic/health-insurance-solutions) [0 Comments ](https://blog.nisbenefits.com/four-advantages-self-funding#postComment) 1 Minutes Many public sector organizations are making the move to self-funded health plans in search of more control and lower costs. Here are four advantages to self-funding: 1. Plan Design Freedom: A self-funded plan can be adjusted, customized, or changed in endless ways, even in bargained environments. Utilization reports are useful to detect trends and help guide plan decision decisions. This will enable you to create a multi-year benefit strategy. Goal achievement is manageable, and savings increase. 2. Tax Savings: Some states don’t tax premiums on self-funded plans. You may also save on some ACA taxes and fees. 3. Lower Administrative Costs: Having a third-party administrator administrate your self-funded plan is usually less expensive than going through the insurance carrier. 4. Better Cash Flow: In lieu of pre-paying for coverage, you pay out funds only when claims are paid.* This allows you to earn interest on the reserve, improving cash flow. Additionally, utilization reports will help forecast claims and insurance costs for the next year, allowing better cash flow and benefit planning. *other than a monthly administration fee [![New call-to-action](https://no-cache.hubspot.com/cta/default/3325505/8735e94c-f275-430e-91d3-bc193234be09.png)](https://cta-redirect.hubspot.com/cta/redirect/3325505/8735e94c-f275-430e-91d3-bc193234be09)   --- #### Tag: [ Health Insurance Solutions](https://blog.nisbenefits.com/topic/health-insurance-solutions) #### Share: - [Follow us on Facebook ](http://www.facebook.com/share.php?u=https://blog.nisbenefits.com/four-advantages-self-funding) - [Follow us on Twitter ](https://twitter.com/intent/tweet?url=https://blog.nisbenefits.com/four-advantages-self-funding&text=The%20Four%20Advantages%20of%20Self-Funding) - [Follow us on Linkedin ](http://www.linkedin.com/shareArticle?mini=true&url=https://blog.nisbenefits.com/four-advantages-self-funding) - [Follow us on Pinterest ](http://pinterest.com/pin/create/button/?url=https://blog.nisbenefits.com/four-advantages-self-funding&text=The%20Four%20Advantages%20of%20Self-Fundingdescription=Many%20public%20sector%20organizations%20are%20making%20the%20move%20to%20self-funded%20health%20plans%20in%20search%20of%20more%20control%20and%20lower%20costs.%20Here%20are%20four%20advantages%20to[...]&media=https://cdn2.hubspot.net/hubfs/3325505/blog-headers/self-fund%20B.jpg) --- [ #### IRS Issues HSA Contribution Change for HDHP Family Coverage ##### Previous Post ](https://blog.nisbenefits.com/irs-issues-hsa-contribution-change-for-hdhp-family-coverage) [#### Have You Verified Covered Dependent Eligibility Lately? 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