Self-Funded (Level-Funded) Group Health Plans
Flexible, Cost-Conscious Health Coverage for Alaska Businesses
A self-funded group health plan gives employers greater control over their healthcare costs by paying employee claims directly rather than purchasing a fully-insured policy. For many Alaska businesses, especially those with stable claim histories, self-funding can offer significant long-term savings and flexibility.
Aurora National Insurance helps employers evaluate and implement self-funded and level-funded plans—a hybrid model that combines predictable monthly payments with the potential for surplus refunds.
How Self-Funding Works
Instead of paying a fixed premium to an insurance carrier, the employer funds a claims account and uses it to pay approved medical expenses as they arise. To protect against large or unexpected losses, most employers purchase stop-loss insurance, which caps total financial exposure.
Aurora National Insurance assists with:
- Feasibility and claims-history analysis
- Stop-loss coverage placement
- Third-party administrator (TPA) selection
- Compliance with ERISA and federal reporting rules
Advantages for Employers
- Cost Transparency: See exactly where healthcare dollars go.
- Cash-Flow Benefits: Retain unused funds rather than forfeiting premiums.
- Plan Customization: Design coverage around your workforce’s specific needs.
- Data Insights: Identify cost drivers through claims analysis and wellness tracking.
Is Self-Funding Right for You?
Self-funding typically suits employers with at least 50 employees or predictable medical usage patterns. Our consultants evaluate your claims history, risk tolerance, and financial goals to determine whether a level-funded or fully self-insured model makes sense for your organization.
Take control of your healthcare spending. Contact Aurora National Insurance to explore self-funded and level-funded plan options for your Alaska business.
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