The “BUCA” insurers—Blue Cross Blue Shield, United Healthcare, Cigna, and Aetna—have long controlled the U.S. healthcare market, leaving employers with rising premiums, stagnant care, and few alternatives. But self-funded healthcare programs offer a powerful solution, despite common myths that make employers hesitant to explore them. In our new white paper,  Reality Check: Debunking the 5 Common Myths About Self-Funded Healthcare Programs. Nelson Griswold, Chairman and Chief Evangelist at NextGen Benefits, breaks down these misconceptions and explains how self-funded plans empower businesses to cut costs, improve care, and support employees better. Here, we share highlights to help you separate fact from fiction.

Myth #1: Self-funding is too risky.

Reality: With stop-loss insurance, your financial risk is capped, offering the same predictability as fully funded plans but with the potential to save when claims are low.

Myth #2: Self-funding causes cash flow volatility.

Reality: Level funding smooths costs into equal monthly payments, eliminating spikes and ensuring predictable expenses.

Myth #3: Self-funding is an administrative burden.

Reality: Third-party administrators handle all regulatory and administrative tasks, leaving employers free to focus on their business.

Myth #4: BUCA plans offer better security and access.

Reality: Self-funded plans often use the same networks as BUCA plans but offer greater flexibility, better care, and lower costs.

Myth #5: Employees prefer BUCA plans.

Reality: Employees quickly embrace self-funded plans when they see benefits like no deductibles, no co-insurance, and personalized care.

Why Self-Funding Matters

The BUCA model is expensive and outdated. Self-funding empowers employers to lower costs, improve care, and create happier, healthier workplaces.It’s time to challenge the myths and explore better healthcare options. Start by downloading Reality Check: Debunking the 5 Common Myths About Self-Funded Healthcare Programs today.