Tailored Funding Models Gain Traction

In today’s benefits landscape, one size no longer fits all. Businesses are looking for more control, flexibility, and cost transparency in how they offer health coverage to their teams. That’s why alternative funding models—like self-funding, level funding, and onsite clinics—are gaining traction. These approaches allow employers to tailor their benefits strategy to fit their workforce, budget, and long-term goals. At SWBC Employee Benefits Consulting Group, we help businesses thread the needle between smart funding and meaningful coverage.

Off-the-Rack Isn’t Always the Right Fit

Traditional fully insured plans can feel like buying a suit off the rack—convenient, but not always flattering. Employers pay fixed premiums regardless of actual claims, with little visibility into how those dollars are used. For growing businesses or those with unique workforce needs, this model can feel restrictive and expensive. That’s where alternative funding comes in, offering a more customized approach to benefits financing.

Tailoring Your Strategy with Alternative Funding

Just like choosing the right fabric for a custom suit, selecting the right funding model depends on your business’s size, goals, and risk tolerance. Here’s how three popular alternative funding options compare:

Funding Model	How it Works	Best Fit For	Tailoring Touch
Self-Funding	Employer pays for employee health claims directly, with stop-loss protection.	Larger businesses with stable cash flow.	Full control over plan design and cost usage.
Level Funding	Employer pays a fixed monthly amount; unused claims may result in savings.	Small to mid-sized businesses.	Predictable costs with potential refunds.
Onsite Clinics	Employer provides direct access to care at or near the workplace.	Larger employers with high headcount.	Seamless care access and long-term savings

These models aren’t just flexible—they’re designed to fit your business like a well-tailored suit, offering control, clarity, and customization where it matters most.

The Seamless Support Behind the Stitching

Choosing the right funding model is only part of the process. You need a partner who understands how to measure, manage, and maintain the structure behind the seams. EBCG works closely with businesses to evaluate their workforce, claims history, and risk tolerance, helping them select a funding strategy that’s both sustainable and scalable. From compliance to communication, we help ensure every stitch is in place.

Conclusion

Benefits funding doesn’t have to be rigid or off-the-shelf. With alternative models gaining traction, businesses have more options than ever to create a plan that fits just right. Whether you're exploring self-funding, level funding, or onsite care, EBCG is here to help you tailor a strategy that supports your people and your bottom line—with precision, care, and a hands-on approach.

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Andrew Grove

Andrew Grove is CEO of SWBC’s Employee Benefits Consulting Group, where he has been a key leader since joining the company in 2013. With over 30 years of industry experience, Andrew has established himself as a seasoned expert in delivering tailored solutions to employers of all sizes. His professional journey includes 20 years as an executive at Humana, where he honed his skills in strategic planning, client relations, and benefits consulting. Andrew’s deep understanding of the industry and his commitment to excellence have made him a trusted advisor to many. Andrew attended The University of Texas at San Antonio, is a Health Insurance Associate (HIA) Designee, a Managed Healthcare Professional (MHP) designee, Life Underwriters Training Council (LUTC) graduate and has received numerous awards for outstanding sales achievement. He currently serves on the Producer Advisory Board for United Concordia Dental and the National Broker Advisory Board for UnitedHealthcare.