5 Myths About Self-Funded Healthcare Plans—Debunked
The “BUCA” insurers—Blue Cross Blue Shield, United Healthcare, Cigna, and Aetna—have long controlled the U.S. healthcare market, leaving employers with rising premiums, stagnant care, and few alternatives. But self-funded healthcare programs offer a powerful solution, despite common myths that make employers hesitant to explore them. In our new white paper, Reality Check: Debunking the 5 Common Myths About Self-Funded Healthcare Programs. Nelson Griswold, Chairman and Chief Evangelist at NextGen Benefits, breaks down these misconceptions and explains how self-funded plans empower businesses to cut costs, improve care, and support employees better. Here, we share highlights to help you separate fact from fiction.
Myth #1: Self-funding is too risky.
Reality: With stop-loss insurance, your financial risk is capped, offering the same predictability as fully funded plans but with the potential to save when claims are low.
Myth #2: Self-funding causes cash flow volatility.
Reality: Level funding smooths costs into equal monthly payments, eliminating spikes and ensuring predictable expenses.
Myth #3: Self-funding is an administrative burden.
Reality: Third-party administrators handle all regulatory and administrative tasks, leaving employers free to focus on their business.
Myth #4: BUCA plans offer better security and access.
Reality: Self-funded plans often use the same networks as BUCA plans but offer greater flexibility, better care, and lower costs.
Myth #5: Employees prefer BUCA plans.
Reality: Employees quickly embrace self-funded plans when they see benefits like no deductibles, no co-insurance, and personalized care.
Why Self-Funding Matters
The BUCA model is expensive and outdated. Self-funding empowers employers to lower costs, improve care, and create happier, healthier workplaces.It’s time to challenge the myths and explore better healthcare options. Start by downloading Reality Check: Debunking the 5 Common Myths About Self-Funded Healthcare Programs today.
