Healthcare costs for Indiana employers continue to rise without meaningful improvements in access, transparency, or value. Traditional insurance models offer little control and few options—forcing businesses to absorb higher premiums year after year.
More Indiana companies are stepping away from this cycle by exploring self-funded health plans. Self-funding gives employers the ability to control costs, access real claims data, and build benefits that better serve their workforce—without relying on outdated insurance structures.
In this article, we explain how self-funding works, the advantages it offers, and what your business should consider before making the shift.
What Self-Funding Really Means
In a self-funded plan, your business pays for employee healthcare claims directly, rather than paying a fixed premium to an insurance company. You only pay for the healthcare your employees actually use—not what an insurance carrier estimates you might need.
Here's why, "Is self-funding right for your business?” is an important question to ask:
- You gain full visibility into healthcare spending. Instead of receiving a vague renewal notice each year, you can see exactly where your healthcare dollars are going.
- You avoid inflated administrative costs. Traditional fully insured plans come with hidden fees and markups that drive up premiums—self-funding strips many of these out.
- You customize your health plan to meet your team's needs. Self-funding gives you flexibility to design a plan that fits your employees—not a one-size-fits-all template.
Self-funding isn't about cutting benefits or taking unmanageable risks. It's about building a smarter, more transparent healthcare strategy that aligns with your business goals.
Benefits of Self-Funding for Indiana Employers
Self-funding offers powerful advantages for businesses ready to take control of their healthcare costs and plan design. It’s not just about saving money—it’s about building a stronger, more resilient organization that can invest in its people, protect margins, and compete more effectively for talent. Indiana employers that move to self-funding are gaining the flexibility and financial control needed to adapt to a changing healthcare environment.
If you're evaluating whether self-funding is right for your business, here’s what Indiana employers are already seeing:
- Cost Control: Only pay for the claims your employees actually incur—eliminating inflated projections and unnecessary costs.
- Plan Flexibility: Tailor your benefits to better fit your workforce, making your company more attractive in a competitive labor market.
- Transparency: Access real-time claims data to identify trends, manage costs, and make smarter healthcare decisions.
- Savings Potential: Many businesses experience 15–30% cost reductions compared to traditional fully insured plans.
- Vendor Accountability: Choose your partners—third-party administrators (TPAs), pharmacy benefit managers (PBMs), and stop-loss providers—based on performance and value, not carrier loyalty.
Employers who move to self-funding often find they can offer better benefits, lower costs for employees, and regain critical financial flexibility to invest in growth.
What to Consider Before Implementing Self-Funding
Self-funding isn’t a decision to make lightly. While it offers significant advantages, it also requires careful planning, financial readiness, and the right vendor partnerships to succeed. Employers who approach self-funding with a clear strategy are the ones who see long-term savings, stronger employee satisfaction, and more predictable healthcare expenses.
Before deciding whether self-funding is right for your business, consider these critical factors:
- Cash Flow Management: A self-funded plan requires paying claims as they come in. Your business must be able to manage cash flow and anticipate fluctuations.
- Stop-Loss Insurance: Stop-loss coverage limits your exposure to catastrophic claims, protecting your company’s financial stability while allowing you to take advantage of self-funding's benefits.
- Employee Communication: Educating employees about how the new plan works is essential. Clear communication builds trust, reduces confusion, and encourages smarter healthcare choices.
- Vendor Selection: Partnering with the right TPA, PBM, and stop-loss provider is critical. The right partners help you manage claims efficiently, keep costs in check, and ensure a smooth experience for your employees.
Self-funding offers significant rewards, but success depends on preparation, ongoing management, and partnering with experienced healthcare advisors who can guide your strategy.
Is Self-Funding Right For Your Business?
For Indiana employers who want real control over healthcare costs and a better return on their benefits investment, the answer is increasingly yes.
Self-funding allows businesses to break free from traditional insurance cycles, lower costs, improve benefits, and build more predictable financial strategies. With the right protections in place, employers are seeing lower healthcare spend, stronger employee retention, and greater financial stability year after year.
You don’t have to accept unpredictable renewals or overpriced insurance plans. If you’re ready to build a smarter, more sustainable approach to healthcare, it’s time to explore all of your options.
Ready to take control of healthcare costs and keep your workforce strong? Download our free guide, "The Employer’s Guide to Fixing Indiana’s Broken Healthcare System," and explore how leading Indiana businesses are doing it.
Please let us know if you have any questions. We understand that local companies have unique needs that most national firms don’t consider or struggle to identify. This leaves your people with a less effective, one-size-fits-all benefits plan. However, our ability to cater to the needs of our clients comes from decades of client partnerships. This perspective allows us to fully address unique needs and generate creative benefits plans.
You shouldn’t have to worry about just being a number, offering a generic plan, or getting the unique support you need. Call us today.
This Benefits Insights is not intended to be exhaustive nor should any discussion or opinions be construed as professional advice.