Imagine360 explains how selffunded health plans work – a type of employersponsored insurance where the employer takes on the financial risk of paying healthcare claims directly rather than purchasing a fully insured plan from a carrier. Employers pay claims as they occur and often work with a thirdparty administrator (TPA) to manage operations. Selffunded plans can reduce costs by eliminating fixed premiums and carrierrelated taxes and fees, provide greater visibility into plan performance, and offer more flexibility in plan design. To manage risk, employers typically purchase stoploss insurance to limit exposure to large claims.