Can I Fund at Less Than the Maximum Funding Level / how does Flexible Funding work?

Yes — under Self Fund Health’s Flexible Funding model, employers may be able to fund at less than the maximum once a sufficient reserve has been built in their claims fund. This approach is intended for groups that have accumulated excess cash and no longer need to deposit at the highest rate each month.

How It Works

1. Months 1–3: Building the Reserve

   During the first three months of the plan year, employers fund at the maximum contribution level to create a strong reserve within the For Benefit Of (FBO) account — the account used to pay claims and plan expenses.

2. Month 4 and Beyond: Funding Flexibility

   After that reserve is established, groups with a healthy claims fund balance may be eligible to reduce funding below the maximum. This allows for smoother cash flow while keeping the plan financially secure.

Eligibility

Eligibility for flexible funding is ultimately determined by Yuzu, which reviews the plan’s claims activity and overall fund balance.

You can reach out to accountmanagement@selffundhealth.com if you believe your group has a substantial cash reserve and may qualify.

It’s important to note that eligibility is somewhat subjective — Yuzu takes into account not just the current cash balance, but also how many claims are still in process or marked as unpaid. These pending obligations must be covered before funding levels can safely be reduced.