Avoid High Insurance Costs With Self Insurance

Lower Costs

Businesses operating in the Washington area know that their employees are their most important resource. The team that drives your business forward into the future is vital for your success, and as such, it is important that you take care of them with good pay and benefits. Health insurance is one of the most important benefits that employees expect, but for a business those group insurance policies can quickly become expensive.

However, there are ways to reduce the higher rates without spending a fortune. It’s possible to lower your insurance costs by turning to a self-insurance policy. Your employees still get the protection they deserve, but your business doesn’t have the huge monthly or quarterly premiums that a traditional plan is associated with.

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Self-Insurance Basics

The primary difference in self-insured group medical plans and traditional ones is simple – in a self-insurance plan, the business itself is taking on the risk associated with insurance. Instead of paying premiums to an insurance provider, the monthly payments are placed into a bank account set up specifically for the plan.

Then, as Washington employees use the insurance to get treatment, the funds associated with their costs are taken from the bank account. The amount that is placed into the bank account each month is determined by the insurance company by considering the number of members covered and some basic stats about them. The insurance provider essentially manages the policy, but it’s the business that has most of the risk.

Save Money Over Time

This means that you can save money over time when using a self-insured plan. Additionally, the money that is left over at the end of the year will then be split between the insurance company and the business depending on the agreement in the contract. The fees sent to the insurance company cover their costs of managing the policy.

Additionally, Washington businesses can invest in stopgap insurance that protects them if insurance costs skyrocket. For instance, a couple of employees who suddenly have very high medical costs may end up draining the bank account. Stopgap coverage ensures that the business is only liable for costs up to a certain amount.

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Self-Insurance Benefits

Immediately, it should be clear that the structure of a self-insured medical insurance plan offers some very real benefits to any business. Taking a look at some of them can help you see just why so many other companies have decided on using these policies to give their employees the insurance they deserve.

Lower Costs

Since your business is accepting much of the responsibility associated with the policy, the monthly costs are generally much lower with a self-insured policy. This makes it much easier for smaller Washington businesses to actually afford to offer their team insurance.


Your insurance plan can be greatly adjusted and customized to ensure you’re giving your employees the coverages that they want while still keeping costs within your budget.


The monthly payments you make go into a bank account that is then drawn from as employees use their coverage. If they end up spending less than estimated, your Oroville, WA business could end up receiving a refund at the end of the year – something that can help give you a boost of cash to start the next year on the right foot.


While you’re taking on much of the risk, you still don’t’ have to stress and worry about managing the entire policy yourself. Instead, your insurance provider will manage most of the ins and outs for you – you just end up paying far less in the process.

Self-insured policies give your Washington employees the coverage they need without breaking your budget into pieces. And to offset the risks, you can always purchase stopgap insurance that gives you additional protection in the event that something major occurs – and you can still end up paying less for your coverage in the process. Simply put, any business looking for a group insurance plan owes it to themselves to consider the lower costs of a self-insured policy.

Protection For Your Team

Your Oroville, WA employees are vital to the success of your business. As such, it’s important that you take the time to keep them fully protected. Finding the right insurance policy is the key here, and for most businesses choosing a self-insured plan is the perfect way to do just that.

We can help ensure that you get that plan. Contact our team at today to find out more about our self-insured policies and see how easy and affordable it can be to give your employees the insurance they expect.

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