NDHA Health Benefits Trust

The NDHA Health Benefits Trust is available to all its hospital members. For more information on the NDHA Health Benefits Trust please contact abrennan@ndha.org.


The NDHA Health Benefits Trust was established to help our members address the ever-increasing costs and challenges in providing health care benefits to their employees. Moving away from fully funded plans, the Association and members joined a growing number of employers in making the transition to a self-funded health benefit plan.


So, why are employers opting for self-funded health benefit plans?



A self-funded plan generally costs less than a fully funded plan. It decreases expenses such as taxes on premiums and administrative costs. Profit margins charged by insurance companies are eliminated.



In a self-funded plan, claims are paid for as they occur whereas in a fully funded plan, the full premium is paid regardless of actual claims. If a substantial number of claims arise, stop-loss insurance kicks in to pay claims that exceed a certain threshold, ensuring protection for plan.



Self-funded plans are not a one-size-fits-all plan. Employers are not locked into off-the-shelf plans that are offered by insurers. Benefit plans can be optimized to meets the unique needs of employees and best suit the organization.



More often than not, insurers keep the claims data in fully funded plans. Self-funded plans offer more transparency into costs and claims. Members can see the big picture and, with help from the trust administrator, be more proactive in implementing wellness, prevention, and alternative care programs for their employees.

Making the switch to a self-funded plan is a smart choice for employers who want to take back control of their health benefits and manage costs. By working together and pooling resources, members gain access more flexible large group health plan rules. They also gain improved leverage in negotiating health insurance premiums.