a plan offered by employers who directly assume the major cost of health insurance for their employees. Some self-insured plans bear the entire risk. Other self-insured employers insure against large claims by purchasing stop loss coverage. Some self-insured employers contract with insurance carriers or third party administrators for claims processing and other administrative services; other self-insured plans are self administered. Minimum Premium Plans (MPP) are included in the self-insured health plan category. All types of plans (Conventional Indemnity, PPO, EPO, HMO, POS, and PHOs) can be financed on a self-insured basis. Employers may offer both self-insured and fully insured plans to their employees.
a health insurance plan you set up to pay health care expenses for your employees
a less expensive way for an employer to provide health care benefits, provided the claims experience is favorable and the employer can realize a good rate of return on the money deposited in the trust account
a plan that reimburses your employees for medical expenses not covered by an accident or health insurance policy
An employer who offers health insurance to its employees, with the benefits paid for entirely by the employer. Self-insured plans are exempt from regulation by state laws, but are subject to certain federal requirements under ERISA.
A retirement plan funded through a fiduciary—generally a bank but sometimes a group of individuals—which directly invests the accumulated funds. Retirement payments are made from these funds as they fall due. Also known as trusteed plan or directly invested plan.
Employer-provided health insurance in which the employer, rather than an insurer, is at risk for its employees' medical expenses.
See self-funded plan.
A health insurance plan provided by an employer who assumes all of the financial risk of providing health insurance benefits to employees. The employer may contract the administration of its health insurance program to an insurer or third party administrator (TPA). Self-insured plans are exempt from regulation by state laws, but are subject to certain federal requirements under ERISA.
A plan in which the employer itself is responsible for paying covered health care costs for participating employees and family members. Claims may be administered by an insurance company, but there is no insurance policy involved. Under federal law called ERISA (Employee Retirement Income Security Act), self-insured plans are exempt from state insurance laws.