14:29 PM

BCBSAZ Offers Businesses a Balanced Funding Solution Focused on Predictability and Affordability

Blue Cross Blue Shield of Arizona (BCBSAZ) announced a new administrative services solution with the potential of delivering more predictability and affordability for businesses who prefer a self-funded model for their health benefits.

This new Balanced Funding solution allows qualifying businesses with 15 or more enrolled employees to pay a fixed, monthly amount, which includes the cost of administrative services, stop-loss insurance, and all claims coverage. Real predictability and stability results, as monthly payments remain the same for the year and do not fluctuate based on claims.

“Delivering a Balanced Funding solution to employers is one more example of our commitment to Arizona’s business community,” said Mike Tilton, general manager of commercial business, BCBSAZ. “Healthcare costs can make up 5 percent of a business’s operating budget.1 This solution takes the guesswork out of managing that line item and ultimately gives the business a better sense of stability.”

Advantages of Balanced Funding:

  • Easier budgeting. Businesses may qualify for a lower fixed monthly cost than what they are paying today.2
  • All-inclusive. Monthly payments made by the business cover administrative services, stop-loss insurance, and claims coverage.3
  • Potential refunds. Businesses have the ability to earn dollars back if claims are lower than expected.
  • No surprises. If annual claims are more than what the business has paid, no additional dollars are owed.
  • Enhanced transparency. Monthly reports allow businesses to track healthcare trends and costs throughout the year.

Components of Balanced Funding make it a viable solution for businesses that have employees who are engaged in their healthcare and use their plan in a cost efficient and effective manner. Interested businesses can learn more about these plans through their health insurance broker or at

About Blue Cross Blue Shield of Arizona

Blue Cross Blue Shield of Arizona (BCBSAZ) is committed to helping Arizonans get healthier faster and stay healthier longer. With a focus on connecting people with the care they need, BCBSAZ offers health insurance and related services to nearly 1.5 million customers. BCBSAZ, a not-for-profit company, is an independent licensee of the Blue Cross Blue Shield Association. The company employs nearly 1,500 people in its Phoenix, Chandler, Flagstaff, and Tucson offices. Through advanced clinical programs and community outreach, BCBSAZ is moving health forward. To learn more, visit

1. Society Management, 2017 Health Care Benchmarking Report (Dec. 2017, page 9) for Human Resource

2. Medical criteria are used to establish rates for Balanced Funded arrangements. Not all businesses will qualify.

3. With Balanced Funding, composite rates are fixed. Monthly payments may still change based on a business’s employee census, as employees or dependents are added or removed.