As questions about the Patient Protection and Affordable Care Act continue to surface and rising premium costs remain the reality, small businesses are exploring their health care options, and one solution that has come up is self-funded plans.

The risks involved

Traditionally, self-funded plans have been an option for larger businesses because of the risks involved, says Cynthia Adams, owner and managing consultant of Integrated Benefits Services in Las Vegas. Employers using self-funded plans must be prepared for what could be a substantial cash flow, and small businesses do not typically have the necessary resources.