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In a Nutshell 2012-06-30T19:41:54+00:00

In a Nutshell

inanutshellA self-insured group health plan (or a ‘self-funded’ plan as it is also called) is one in which the employer assumes the financial risk for providing health care benefits to its employees. In practical terms, self-insured employers pay for each out of pocket claims as they are incurred instead of paying a fixed premium to an insurance carrier, which is known as a fully-insured plan. Typically, a self-insured employer will set up a special reserve fund to earmark money (corporate and employee contributions) to pay incurred claims.