Most small businesses use fully funded plans from major health insurance companies. However, you do have an option for a self-funded plan.nnHere are the differences between the two.nnFully Funded PlansnnFully funded plans are the most common type of small business health insurance. As a small business owner, you enroll in a group coverage plan from an insurance company.nnThe primary providers for fully funded plans are five legacy plans: Blue Cross Blue Shield (BCBS), United Healthcare, Cigna, Aetna, and Humana. These five companies are sometimes abbreviated as BUCAHs.nnSelf-Funded PlansnnAnother option is to create a self-funded plan, where the employer sponsors the plan. That means you pay your employees' health insurance claims. It's riskier in terms of cost, but if your company can afford it, you have more direct control over your structure.nnWith a fully funded plan, you must pay the same premium each month regardless of whether or not your employees use benefits. With a self-funded plan, you only pay for medical expenses as needed.nnFully funded plan premiums can change yearly depending on how much coverage your employees use. You have more control over the yearly changes in premiums with a self-funded plan.