Self Funded Cash Flow Analyzer
Compare any two of six funding arrangements side by side. Model the working capital, float interest, contract protections, and break even crossover a CFO actually underwrites.
Plan Inputs
Start with what you already know. Type PEPM (per employee per month) if that is how your broker quotes you, or switch to the total monthly premium if that is easier to read off your current bill.
How Will You Fund Cash Flow Volatility?
Self-funded claims arrive unevenly. Whether you cover the spikes with internal cash, a credit facility, or a mix changes the true cost.
Stop-Loss Contract & Protections
Type your deductibles, then answer the questions below. Funding-flow and structural questions come first; embedded medical protections follow. Any "No" surfaces as a flag on the results with a path to fix it.
Funding-flow & structural contract questions
Embedded medical-risk protections
These are clinical and pharmacy cost-containment services some carriers bundle into the stop-loss contract. When present, they typically absorb or reroute the six-figure claims that drive renewal increases, which is why they move the needle on long-term premium trajectory.
Claims Simulation · Month 1 through Month 12
Plan-year claims mapped month by month. The default is an evenly-spread baseline derived from your expected claims. Adjust any month's spread, add named high-cost events (specialty Rx, oncology, transplant, etc.), and the math updates downstream.
Baseline claims = expected annual claims ÷ 12. "Lumpy" adds ±25% variance between months. "Q4-heavy" back-loads the year to reflect typical deductible-reset behavior.
Months labeled 1-12 rotate off your plan-start selection above. Lasered rows apply the individual's higher attachment. Events keep their category icon; rename or convert back to "Other" anytime.
True Cost of Self-Funding ?
Cash-Flow Cost of Funding ?
The single dollar figure for funding cash flow this plan year, opportunity cost in yield mode, interest expense in loan mode.
Monthly Cash Flow by Arrangement ?
Bars above the line are cash out the door. Bars below the line are stop-loss reimbursements coming back in. Each chart is one of the arrangements you selected.
Keep Going ?
Three companion tools that build on what you just modeled. Use them to stress-test a renewal, quantify benefits ROI, or project total health plan cost.
Reading funding decisions through a cash-flow lens
Two health plans can cost the same on paper and behave very differently in your bank account. This analyzer compares funding arrangements on the things a finance leader actually manages: working capital tied up, the timing of claims and premium outflows, float interest on reserves, contract protections, and the point where one option overtakes another.
Fully insured smooths everything into a fixed monthly premium with no working capital exposure. Level funding keeps a fixed bill while returning surplus later. Self funding frees up float and can lower total cost, but it asks you to hold reserves and absorb timing swings, with stop loss capping the downside.
Pair this with the Health Plan Cost Projector to compare total cost across the same models, and the Premium Renewal Stress Test to see how each option holds up in a bad claims year.
Funding and cost benchmarks for employer plans are published in the KFF Employer Health Benefits Survey.
What the analyzer compares beyond headline cost:
- Working capital tied up in the plan
- Timing of claims and premium outflows
- Float interest earned on held reserves
- The break-even crossover between arrangements
Frequently asked questions
Why does cash flow matter if the annual cost is similar?
Because timing and working capital have a cost. A plan that ties up reserves or front-loads outflows carries an opportunity cost that a simple premium comparison hides.
What is the break-even crossover?
It is the claims level at which one funding arrangement becomes cheaper than another. Knowing where you sit relative to that point is central to choosing with confidence.
Does self funding always free up cash?
Often, through float on reserves and the elimination of carrier risk margin, but it also requires holding those reserves and managing timing. The analyzer shows the net effect.