Self-Funding Is Simple. We Make It Sound Complicated. | with Carrie Cherveny

“They’re taking these 40, 50% increases because they just are afraid or don’t understand self-funding, and won’t move into an alternate risk environment.” - Carrie Cherveny

Self-funding isn’t as complicated as it sounds. But collateral, captive managers, stop-loss contracts... most employers hear the jargon, tune out, and sign another big renewal.

Carrie Cherveny, SVP of Alternative Risk at HUB International, joins me this week to explain self-funding in plain language, starting with why fully insured is renting and a captive is owning a townhouse. We also cover why companies leaving a PEO shouldn’t get parked in fully insured, why level funding works as training wheels for self-funding, and why you should get all of your surplus back.

If you’ve ever struggled to explain self-funding to a client, this is the episode for you. Tune in.

Thank you to our 2026 sponsors!

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Samaritan Fund: A program that connects those who need help to the support they need. We are proud to offer the Samaritan Fund Program. Visit SamaritanFundProgram.com to learn more.

Vālenz Health: We're Vālenz Health, your partner in improving health literacy, reducing plan spend, and delivering high-value healthcare. Visit ValenzHealth.com to learn more.

Imagine360: Imagine360 helps self-funded employers save on healthcare with smarter health plans. Cut expenses by 20-30% with custom solutions. Contact us today at Imagine360.com.

Chapters:

(00:00:00) Introduction

(00:00:39) Why a Captive Is Like a Townhouse

(00:07:02) Carrie Cherveny and HUB’s Alternative Risk Practice

(00:09:31) Why Renewals Leave Employers in the Dark

(00:12:00) The Biggest Barrier to Self-Funding: Education

(00:21:12) PEOs, Self-Funding, and the Fully Insured Dead End

(00:29:23) Breaking the 12-Month Renewal Cycle

(00:40:36) Why Captives Need an Industry Association

(00:44:54) Level Funding as Training Wheels

(00:51:21) Start With the Business Conversation

(00:55:38) Keeping Relationships Personal as Captives Grow

(01:07:10) Closing Thoughts

Key Links for Social:

@SelfFunded on YouTube for video versions of the podcast and much more - https://www.youtube.com/@SelfFunded

Listen/watch on Spotify - https://open.spotify.com/show/1TjmrMrkIj0qSmlwAIevKA?si=068a389925474f02

Listen on Apple Podcasts - https://podcasts.apple.com/us/podcast/self-funded-with-spencer/id1566182286

Follow Spencer on LinkedIn - https://www.linkedin.com/in/spencer-smith-self-funded/

Follow Spencer on Instagram - https://www.instagram.com/selffundedwithspencer/