In response to the rising costs of health care and large increases in insurance premiums, a study was conducted at Lakeshore Technical Institute (LTI) to investigate the feasibility of using a self-funded health insurance plan at the college. Data were obtained through a literature review; telephone and on-site discussions with a personnel manager, health representative, and health insurance consultants; and a survey of personnel managers in organizations that had self-funded health insurance plans. The study revealed a number of important factors and criteria to be weighed in decisions related to self-funded health insurance, including type and size of the organization; types of self-funded insurance plans; current and projected financial positions and ability to finance; savings on health care costs; level of savings needed to implement the plan; liability insurance; and successful experience in implementing the plan. When these factors were considered, it was concluded that LTI was in a favorable position to self-fund its insurance plan, based on its size and stable financial position. However, it was concluded that the recommendation to self-fund the plan needed further analysis. References and the survey instrument are appended. (EJV)