Page 29 - HealthStream

Funding analysis

Fully Insured vs. Self-Funded
Fully insured vs. self-funded

Maximum liability for
the employer Expected liability for

Fixed liability for the employer
the employer

Corridor
for high claims (25%)

Claims
(included in fixed cost) Claims
(variable cost)
Fixed cost
for the
employer

Total savings Stop-loss premium Specific (ISL)/
Administration 3% – 5% aggregate
(ASL)
Administration

Fully insured Self-funded

2

HealthStream — Lockton Employee Beneits Practice Overview 29 Lockton Companies