But any savings a company might achieve come with financial risks. Employers that self-fund typically buy stop-loss insurance to protect them if employees have higher-than-expected health care claims. But such coverage isn’t guaranteed and may only be available to firms with healthier employees, said John Arensmeyer, CEO of the Small Business Majority, an advocacy group that focuses on companies with fewer than 100 workers.
“Our concern is, is it really appropriate for a business of that size to be taking the risk?” Arensmeyer said. “They’re simply taking themselves out of the rules of the ACA, creating an imbalance in the market.”