--- title: Why Employers are Moving to Self-Funded Health Insurance Plans description: Moving to self-funding is an ACA strategy that many schools and local governmental employers are embracing in order to save money and control costs. --- # Why Employers are Moving to Self-Funded Health Insurance Plans - Home - [Employee Benefit News for School, City and County Employers](https://blog.nisbenefits.com) - Why Employers are Moving to Self-Funded Health Insurance Plans [ Valerie Ortiz ](https://blog.nisbenefits.com/author/valerie-ortiz) 12/09/2015 [ Health Insurance Solutions](https://blog.nisbenefits.com/topic/health-insurance-solutions) [0 Comments ](https://blog.nisbenefits.com/why-school-city-and-county-employers-are-moving-to-self-funded-health-insurance-plans#postComment) 1 Minutes Moving to self-funding is an ACA strategy that many schools and local governmental employers are embracing in order to save money and control costs. When using a self-funded plan, employers assume the liability and risk associated with uncertain healthcare costs in exchange for a number of significant financial benefits. To protect against unpredictable or above-average claims, the organization purchases stop-loss coverage as a way to limit risk. The stop-loss provider pays any claims higher than that pre-set amount. ## Key Advantages Here are four key advantages for self-funding: 1. Plan Design Freedom: Utilization reports can help you create a multi-year benefits strategy plan that can be customized, adjusted and changed in endless ways. 2. Tax Savings: In certain states, there are no premium taxes on self-funded plans. You can also save on ACA taxes and fees including Medical Loss Ratio Rules, Annual Insurance Fees, Reinsurance Fees for 2015-16 and Insurance Premium Reductions. 3. Lower Administrative Costs: Self-funded plans administered through a third party administrator are usually less expensive than through the insurance carrier. 4. Better Cash Flow: Funds are only required when claims are paid. This allows your organization – instead of the insurance company – to earn interest on the reserve. Also utilization reports can help forecast claims and insurance costs for next year, allowing for better cash flow. For more information, watch our [video](https://info.nisbenefits.com/video-self-funding-101?utm_campaign=NIS%20Blog%20Referral&utm_source=blog-article&utm_medium=video). [![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/why-school-city-and-county-employers-are-moving-to-self-funded-health-insurance-plans) - [Follow us on Twitter ](https://twitter.com/intent/tweet?url=https://blog.nisbenefits.com/why-school-city-and-county-employers-are-moving-to-self-funded-health-insurance-plans&text=Why%20Employers%20are%20Moving%20to%20Self-Funded%20Health%20Insurance%20Plans) - [Follow us on Linkedin ](http://www.linkedin.com/shareArticle?mini=true&url=https://blog.nisbenefits.com/why-school-city-and-county-employers-are-moving-to-self-funded-health-insurance-plans) - [Follow us on Pinterest ](http://pinterest.com/pin/create/button/?url=https://blog.nisbenefits.com/why-school-city-and-county-employers-are-moving-to-self-funded-health-insurance-plans&text=Why%20Employers%20are%20Moving%20to%20Self-Funded%20Health%20Insurance%20Plansdescription=Moving%20to%20self-funding%20is%20an%20ACA%20strategy%20that%20many%20schools%20and%20local%20governmental%20employers%20are%20embracing%20in%20order%20to%20save%20money%20and%20control%20costs.%20When%20using[...]&media=) --- [#### President Signs Bill to Halt ACA Small Group Employer Definition Change ##### Previous Post ](https://blog.nisbenefits.com/president-signs-bill-to-halt-aca-small-group-employer-definition-change) [#### Why HRAs may work better for schools, cities and counties than HSAs ##### Next Post ](https://blog.nisbenefits.com/four-reasons-why-hras-may-work-better-for-schools-cities-and-counties-than-hsas) ### Leave a Reply This is a search field with an auto-suggest feature attached. - There are no suggestions because the search field is empty. ### Category - [Legislative News (1149)](https://blog.nisbenefits.com/topic/aca-other-legislative-news) - [Health Insurance Solutions (504)](https://blog.nisbenefits.com/topic/health-insurance-solutions) - [COVID-19 (209)](https://blog.nisbenefits.com/topic/covid-19) - [Ancillary Benefits (175)](https://blog.nisbenefits.com/topic/ancillary-benefits) - [Mental Health (122)](https://blog.nisbenefits.com/topic/mental-health) ### Popular Posts [ Steve Smith ](https://blog.nisbenefits.com/author/steve-smith) 02/16/2024 [ Health Insurance Solutions](https://blog.nisbenefits.com/topic/health-insurance-solutions) [ Understanding Embedded vs. Nonembedded Deductibles ](https://blog.nisbenefits.com/understanding-embedded-nonembedded-deductibles) [ Erin Woulfe ](https://blog.nisbenefits.com/author/erin-woulfe) 02/09/2026 [ Health Insurance Solutions](https://blog.nisbenefits.com/topic/health-insurance-solutions), [ Legislative News](https://blog.nisbenefits.com/topic/aca-other-legislative-news) [ IRS Releases 2027 Health Plan Cost-sharing Limits ](https://blog.nisbenefits.com/2027-health-plan-cost-sharing-limits) [ Valerie Ortiz ](https://blog.nisbenefits.com/author/valerie-ortiz) 02/17/2026 [ Health Insurance Solutions](https://blog.nisbenefits.com/topic/health-insurance-solutions), [ The Administrator's Corner](https://blog.nisbenefits.com/topic/the-administrators-corner) [ 4 Employee Wellness Trends You Can’t Ignore in 2026 ](https://blog.nisbenefits.com/2026-employee-wellness-trends) [ Dina Lubben ](https://blog.nisbenefits.com/author/dina-lubben) 11/14/2025 [ Health Insurance Solutions](https://blog.nisbenefits.com/topic/health-insurance-solutions), [ Legislative News](https://blog.nisbenefits.com/topic/aca-other-legislative-news) [ Trump Administration Unveils Plan to Make GLP-1 Drugs Affordable ](https://blog.nisbenefits.com/trump-administration-plan-glp1-drugs-affordable) --- ## Related Posts [ Health Insurance Solutions](https://blog.nisbenefits.com/topic/health-insurance-solutions), [ Legislative News](https://blog.nisbenefits.com/topic/aca-other-legislative-news), [ The Administrator's Corner](https://blog.nisbenefits.com/topic/the-administrators-corner) [ Valerie Ortiz ](https://blog.nisbenefits.com/author/valerie-ortiz) 07 July, 2026 #### [New CMS Report: Healthcare Spending Trends Through 2034](https://blog.nisbenefits.com/healthcare-spending-trends-through-2034) New projections from the U.S. Centers for Medicare and Medicaid Services (CMS) Office of the… [Read More](https://blog.nisbenefits.com/healthcare-spending-trends-through-2034) [ Health Insurance Solutions](https://blog.nisbenefits.com/topic/health-insurance-solutions), [ Ancillary Benefits](https://blog.nisbenefits.com/topic/ancillary-benefits), [ The Administrator's Corner](https://blog.nisbenefits.com/topic/the-administrators-corner) [ Rick Labian ](https://blog.nisbenefits.com/author/rick-labian) 30 June, 2026 #### [5 Ways Year-Round Benefits Education Supports Employees](https://blog.nisbenefits.com/year-round-benefits-education) Open enrollment is a critical time for employees to choose health coverage and voluntary benefits,… [Read More](https://blog.nisbenefits.com/year-round-benefits-education) [ Health Insurance Solutions](https://blog.nisbenefits.com/topic/health-insurance-solutions), [ The Administrator's Corner](https://blog.nisbenefits.com/topic/the-administrators-corner) [ Chris Bauer ](https://blog.nisbenefits.com/author/chris-bauer) 29 June, 2026 #### [Understanding FSA Carryovers](https://blog.nisbenefits.com/understanding-fsa-carryovers) If you contribute to a health flexible spending account (FSA), you benefit from using pretax… [Read More](https://blog.nisbenefits.com/understanding-fsa-carryovers)