Large corporations as well as small businesses could save billions of dollars if they established their own self-funding employe health benefit plans, according to John B. Amos, chairman of American Family Corp.

With that in mind, a new subsidiary of American Family has been formed here to help companies set up such programs. The new firm is called Medical Cost Management Systems Inc. (MCMS) and will be headed by Max Fine, former executive director of the Committee for National Health Insurance.

Acting as a third party administrator, MCMS offers complete consulting and administrative services including enrollment, eligibility files, claims payment, surveillance of charges by providers of services and utilitzation review.

"Self-funding holds the greatest promise," Amos said. "And while we have tremendous experience and know the problems, we are not wedded to old solutions."

According to Amos, a self-funding plan could dramatically reduce the cost of health benefits for a company by encouraging employers and employes to question excessive charges and keep costs down, since savings mean lower payroll deductions, higher paychecks and more benefits.

Fine, former chief of research publications for the Social Security Administration, has been senior health care consultant to the United Auto Workers union since 1968.