The Affordable Care Act, coupled with a desire for flexibility, is fuelling a movement toward self-insurance among smaller employers. Traditionally the domain of large employers, self-funded health plans are becoming an increasingly attractive alternative for employers with as few as 25 employees.
According to the 2013 Kaiser Family Foundation/Health Research & Educational Trust report on employer health benefits, 16% of workers at small firms those with between three and 199 workers are enrolled in health plans which are either partially or completely self-funded, compared to 83% of workers at larger companies. Six percent of firms offering fully insured plans, meanwhile, say they intend to self-insure because of the ACA.
