There are many reasons a company may determine that it makes sense to self-fund its short-term disability plan.  When compared to traditional fully-insured plans, self-funded programs can offer several advantages including:

• Control over schedule of benefit 
• Control over rates and funding options
• Reduced fixed expenses
• Custom reporting
• Improved claims management and control

By buying long term disability insurance with a six month elimination period and self funding for the first six months, you can save thousands of dollars in premiums during that first six months.  The money saved in premiums then establishes the fund for short term disability claims now paid directly by you.

In a self-funded plan, the schedule of benefits is entirely flexible according to your specification.  Funding levels or target rates are determined to fund the claims and administrative costs of the plan. 

Service Options

Sheffield, Olson & McQueen, Inc. (SOMI) has been helping companies manage their self-funded, short-term disability insurance for over 20 years.  We provide a comprehensive package of services that brings together plan design, implementation and administrative services. 

SOMI also provides claim management services with advice to pay.