How Do Self-Funded Health Plans Work

We all know there is no one-size-fits-all approach to making healthcare faster, cheaper, and more accessible. However, there is a lot to learn about how to streamline self-funded health insurance plans to have a better fit for more individuals. 

But how do self-funded plans actually work, and how can individuals know if that is the best plan for them? It is a complicated world to navigate for most, so we wrote this article as a talking point for those needing to understand more about how self-funded plans operate.

How Do Self-Funded Health Plans Work

Self-funded plans, also sometimes referred to as self-insurance, is a plan type where the employer takes on most, and occasionally all, of the costs of benefit claims. While the insurance company manages the payments, the employer is the one who pays out the claims.

With a fully-insured plan, the employer pays an insurance premium, which goes into a larger pool of money that pays our claims across a group of employers. However, with a self-funded plan, businesses can either pay medical claims as they come up or have the option of putting down a deposit of expected costs every month. 

Then, when employees seek care and get prescriptions at the pharmacies within their plan’s national or local network, the claim is paid from the expected pool of money instead of an insurance company processing the claim and paying it out based on the chosen health plan.

Self-Funded Plans Benefits

There are many benefits to self-insurance. It is often more flexible than other insurance types. With a self-funded plan, an employer is not subject to the same state requirements – meaning you may get money back. That is not an option for other, fully-funded plans.

The one thing we can count on is that nothing stays the same. Another benefit of self-funded plans is that they give individuals the flexibility to meet various healthcare challenges and better manage overall health needs as they change.

How To Streamline Self-Funded Health Insurance Plans

A constant difficulty for healthcare workers is how long it can take to hear back about quotes, underwriting processes, and more. We know that time is money, and there is no need to spend weeks on something that should take days at most. Knowing how to streamline self-funded health insurance plans is just the beginning of streamlining all healthcare.


If you are wondering how to streamline self-funded plans, you are likely already thinking about how to speed up the billing process. It has become customary to wait days, weeks, and sometimes even months to complete each part of the billing process. Speeding up the billing process is a meaningful way to quickly get self-funded plans into the hands of those who need it more efficiently.

Client Eligibility

Some plans or companies have a minimum requirement that does not work with the size of the business. Searching for small business eligibility can take time and effort. 

With our eDIYBS system, we require only five employees to enroll. While other companies might have high percentage requirements to prevent adverse selection, we know that can take up much time and limit smaller employees. Such a small requirement number allows individuals to streamline their self-funded plans and give employees more autonomy.

Ease of Use

It may sound simple, but it is true – a more complicated system means it takes longer to learn. Finding a system that stays regularly updated and values intuitive design can help you save a little bit of time with every use, adding up to a large amount of saved time over the year.

Learn How To Streamline Self-Funded Health Insurance Plans With eDIYBS

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At Health In Tech, our eDIYBS underwriting system helps you streamline self-funded health insurance plans. Using our state-of-the-art system, we can underwrite plans in just minutes – literally. 

Our eDIYBS system can create a proposal with 12 different plans and four-tier rates in two minutes, allowing you to quote, bind, and enroll your group all before lunch. In total, eDIYBS can reduce sales time by 90%, allowing brokers to underwrite hundreds of groups daily.

Our eDIYBS system is also easy to use, as the platform takes less than 30 minutes of training. You can even use it to personalize your proposal with a logo and contact information. In addition, we keep our system streamlined for brokers by allowing them to create their compensation within the system instead of creating it on a case-by-case basis, done manually.

This is just the beginning of our eDIYBS system’s benefits, which also includes access to 50 national PPOs and can underwrite in 47 states.

Other Health In Tech Benefits

Health In Tech believes in putting power in the individual’s hands. That is why we have a variety of exciting, modern systems and networks available for individuals to use to help them navigate modern healthcare needs. Our benefits include:

We are also constantly updating our free resources page to help individuals at all levels better navigate how to move through the healthcare system and streamline their lives efficiently.

How To Streamline Self-Funded Health Insurance Plans With Health In Tech

One of our core values is disruption. For us, this means disrupting the accepted healthcare norm, being a tedious, difficult-to-deal-with system that can take months to move forward. Health In Tech knows how to streamline self-funded health insurance plans, and we are available to help individuals that want to learn more anytime. 

To discuss how to streamline self-funded health insurance plans, or if you have any other questions, contact us via email or call today!

Learn More About What Health In Tech Can Do for You