--- title: "Profiting from health: The self-insurance story - MedCity News" description: Small to midsize employers are starting to consider the self-funding models that large employers have been using for decades. image: http://medcitynews.com/wp-content/uploads/646178wmgz269y0.jpg --- [![Nonstop](https://blog.nonstophealth.com/hs-fs/hubfs/2022-nonstop/images/Nonstop_Logo-22-Horizontal%20(2).png?width=1501&name=Nonstop_Logo-22-Horizontal%20(2).png "Nonstop")](https://www.nonstophealth.com/) ** - [ Outcomes ](https://blog.nonstophealth.com/profiting-from-health-the-self-insurance-story-medcity-news#) - [![icon-1](https://blog.nonstophealth.com/hubfs/2022-nonstop/images/icon-1.svg) Benefits Nonstop Health can improve benefits and lower costs for employees and employers. ](https://www.nonstophealth.com/benefits) - [![icon-2](https://blog.nonstophealth.com/hubfs/2022-nonstop/images/icon-2.svg) Services & Technology Get the most out of your plan with easy administration and usage tracking. ](https://www.nonstophealth.com/services) - [ Resources ](https://blog.nonstophealth.com/profiting-from-health-the-self-insurance-story-medcity-news#) - [![icon-1](https://blog.nonstophealth.com/hubfs/2022-nonstop/images/icon-1.svg) Support Our support team is ready to help, whether you’re an employer, member, or broker. ](https://www.nonstophealth.com/support) - [![icon-3](https://blog.nonstophealth.com/hubfs/2022-nonstop/images/icon-3.svg) Case Studies Seeing our solution in action. ](https://offers.nonstophealth.com/case-studies) - [![icon-4](https://blog.nonstophealth.com/hubfs/2022-nonstop/images/icon-4.svg) Blog Insights and updates to help navigate the health insurance landscape. ](https://blog.nonstophealth.com) - [![icon-5](https://blog.nonstophealth.com/hubfs/2022-nonstop/images/icon-5.svg) Podcasts A collection of conversations built to inspire. ](https://www.nonstophealth.com/podcast) - [![icon-6](https://blog.nonstophealth.com/hubfs/2022-nonstop/images/icon-6.svg) Webinar & Guides Insights and resources to help your organization thrive. ](https://offers.nonstophealth.com/resources) - [ About Us ](https://blog.nonstophealth.com/profiting-from-health-the-self-insurance-story-medcity-news#) - [![icon-7](https://blog.nonstophealth.com/hubfs/2022-nonstop/images/icon-7.svg) Our Team Learn about who we are and what drives us. ](https://www.nonstophealth.com/about-us) - [![icon-8](https://blog.nonstophealth.com/hubfs/2022-nonstop/images/icon-8.svg) Careers Discover rewarding employment opportunities with Nonstop. ](https://www.nonstophealth.com/careers) - [ Account login ](https://www.nonstophealth.com/alert) - [ For employees ](https://members.prod.nonstophealth.com/) - [ For employers ](https://clients.nonstophealth.com/) - [ For brokers ](https://channel.nonstophealth.com/) - [ Contact Us ](https://www.nonstophealth.com/contact-us) # Profiting from health: The self-insurance story - MedCity News ![insurance, medical insurance, healthcare reform](http://medcitynews.com/wp-content/uploads/646178wmgz269y0.jpg) ![insurance, medical insurance, healthcare reform](http://medcitynews.com/wp-content/uploads/646178wmgz269y0.jpg)In this article for MedCity News by Adam Schaefer, we look at the reality employers face when it comes to purchasing fully-funded group insurance (the standard group policy from an insurance carrier). Read the full original article from [MedCity News](http://medcitynews.com/2016/10/profiting-health-self-insurance-story/). Unlike the individual, employers have a way to break out of this status quo and realize very real cost savings for their company as well as for their employees. Companies can do this through what is known as self-insurance (also called self-funding, partial self-funding, or partial self-insurance). "At the most basic level, insurance is purchased to shift risk. A policyholder doesn’t want to be liable for a negative outcome, so an insurance company takes on that liability and charges a premium. In a self-funded setup, a company decides to take on this risk itself instead of paying an insurance carrier to assume it. For the employees, everything may look and operate exactly the same." Very large companies have been using this model for decades, but small to midsize companies are now considering self-funding as an option as well. And for good reason - switching to a partially self-funded plan can save a baseline of 12.5% on healthcare spend while reducing or eliminating out-of-pocket costs for employees. **Learn more about these savings in the Nonstop Quick Guide to Partial Self-Insurance:** **[![Download Now](https://no-cache.hubspot.com/cta/default/569324/4078a3c6-25c2-49ab-b106-ab4f22da614a.png)](https://cta-redirect.hubspot.com/cta/redirect/569324/4078a3c6-25c2-49ab-b106-ab4f22da614a)** The information and materials herein are provided for general information purposes only and are not intended to constitute legal or other advice or opinions on any specific matters and are not intended to replace the advice of a qualified attorney, plan provider or other professional advisor. This information has been taken from sources believed to be reliable, but there is no guarantee as to its accuracy. 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