Does A Self Funded Health Insurance Plan Work? 
Most self funded employer plans are subject to ERISA rules and bypass most state regulations . Self funded plans have been popular for many years , mostly among `` jumbo '' groups . But several stop loss carriers will issue specific and aggregate coverage on groups as small as 25 employees . Due to Obamacare constraints , several carriers and TPA 's are creating plans that can cover smaller employer groups with 5 - 10 employees . When properly insured with spec and agg cover and solid financial underwriting , it is indeed possible to provide self funded coverage to smaller groups . 