---
title: Is Self-Funding the Answer to the Rising Cost of Health Care Benefits?
description: Robust benefits packages strengthen the employee experience. Self-funding helps employers offer enhanced employee benefits and manage health care spend.
image: https://learn.novahealthcare.com/hubfs/email-images/AdobeStock_1138289329.jpeg
---

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**Employee Benefit Solutions**

**# What Is the Best Way to Reduce Rising Health Care Costs for Employers?**

**## Lower health care costs without sacrificing employee benefits

More businesses are turning to self-funded and level-funded health insurance plans to gain greater control, transparency, and long-term healthcare savings. 

Why make the switch:

- Greater control over health care costs and plan design
- Access to real-time claims data and reporting insights
- More flexibility to customize employee benefits and cost containment strategies

 

 BUTTON

## Lower health care costs without sacrificing employee benefits

More businesses are turning to self-funded and level-funded health insurance plans to gain greater control, transparency, and long-term healthcare savings. 

Why make the switch:

- Greater control over health care costs and plan design
- Access to real-time claims data and reporting insights
- More flexibility to customize employee benefits and cost containment strategies

### Common Myths About Self-Funded Health Insurance

Myth #1

### "It's only for large companies."

 Reality: Modern self-funded health plans are now accessible to small and mid-sized employers through level-funded options, stop-loss protection, and flexible benefit strategies that help control health care costs.

Myth #2

### "It's too risky."

 Reality: With stop-loss insurance, claims management, and cost containment strategies, self-funded insurance can offer greater financial predictability and long-term savings than traditional fully insured plans

Myth #3

### "It's difficult to manage."

 Reality: An experienced third-party administrator (TPA) can simplify claims processing, compliance, reporting, and employee support, making self-funded plans easier to administer than many employers realize.

![Nova logo](https://learn.novahealthcare.com/hs-fs/hubfs/Nova%20Almonds%20Color.png?width=971&height=971&name=Nova%20Almonds%20Color.png)

Self-Funded Facts

A Growing Trend Among Employers

More than half of U.S. workers with employer-sponsored coverage are enrolled in self-funded health plans, according to national healthcare research.

![Nova logo](https://learn.novahealthcare.com/hs-fs/hubfs/Nova%20Almonds%20Color.png?width=971&height=971&name=Nova%20Almonds%20Color.png)

Self-Funded Facts

Data that Drives Decisions

Employers with self-funded health plans gain access to real-time claims data, helping identify cost drivers and opportunities to reduce health care spending faster.

![Nova Almonds Color](https://learn.novahealthcare.com/hs-fs/hubfs/Nova%20Almonds%20Color.png?width=971&height=971&name=Nova%20Almonds%20Color.png)

Self-Funded Facts

Benefits Built Around Your Workforce

Self-funded insurance plans allow employers to customize benefits, wellness programs, and cost-containment strategies based on the unique needs of their workforce. 

 Why Nova?

## Discover the benefits of self-funded health plans.

Nova is a health plan solutions company that prioritizes flexibility, empathy and partnership. We believe the best solutions are built together.

[Say Hello to Self-Funding](https://learn.novahealthcare.com/hubfs/website-materials/take-control-of-healthcare-costs-infographic-self-funding.pdf)

### Phone

[1-800-999-5703](tel:1-800-999-5703) 

### Email

[Send us a message!](https://learn.novahealthcare.com/contact-nova-broker)

### Location

Buffalo, NY**

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#### About Nova

- [Who We Are](https://www.novahealthcare.com/about-us)
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- [Nova News](https://www.novahealthcare.com/about-us/newsroom)
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#### Blog Topics

- [A Guide to Reference-Based Pricing](https://www.novahealthcare.com/resources/blog/2026/reference-based-pricing--guide-for-employers-)
- [Discover Hidden Benefits](https://www.novahealthcare.com/resources/blog/2026/the-hidden-benefits-in-your-health-plan-employees-often-miss)
- [Self-Funded Health Plan Cost Drivers](https://www.novahealthcare.com/resources/blog/2026/understand-cost-drivers-that-impact-your-self-funded-plan)
- [From Deductibles to Networks](https://www.novahealthcare.com/resources/blog/2026/help-employees-understand-their-new-benefits)

#### Podcast Episodes

- [Went in for a screening...and got a bill?](https://open.spotify.com/episode/5lToX5WS3l49dCcMsCj3ra?si=y6kuHUXMS-yxYebqE6fUUg)
- [Understanding medical bills and EOBs](https://open.spotify.com/episode/7vaIFaKmbMY4t5UzyLgRuj?si=BnBglhp1Qmagty1uKwf7xQ)
- [Deductibles, copays, & coinsurance](https://open.spotify.com/episode/1nVYfFOSwuco2PWwXhDIlx?si=OAsXpHWXRfiiZChp8N4Ryw)
- [ER expenses explained](https://open.spotify.com/episode/5hUkIgsj8QqoT400GhJFQT?si=KGa7NkJFQsOzIDysAa36ZA)**