Employers these days are looking at ways to control health care costs. They hear that health care is an important benefit to their employees, but face the task of figuring out how to offer the benefit without exposing themselves to claims that could destroy their bottom lines or even their companies.

So it would seem counterintuitive for employers—especially small to mid-size organizations—to assume more risk in today's marketplace. But that's exactly what's happening thanks to self-funding, or self-insurance.

Industry veterans report that over the past decade, more and more small to mid-size employers have turned to self-funding as a way to control costs, offer valuable health care benefits and keep employees productive.