Self-insured employers

Self-insured health insurance means that the employer is using their own money to cover their employees' claims. Most self-insured employers contract with an insurance company or independent third party administrator (TPA) for plan administration, but the actual claims costs are covered by the employer's funds.

What does it mean when a company self insures?

Being self-insured means that rather than paying an insurance company to pay medical, dental and vision claims, we pay the claims ourselves, using a third-party administrator to process the claims on our behalf.

What is the difference between self and fully insured?

Fully-insured plan—employer purchases insurance from an insurance company. Self-funded plan—employer provides health benefits directly to employees. insurance company assumes the risk of providing health coverage for insured events.

What is an example of self-insurance?

In the United States, self-insurance applies especially to health insurance and may involve, for example, an employer providing certain benefits—like health benefits or disability benefits—to employees and funding claims from a specified pool of assets rather than through an insurance company.

What is a self-insured plan?

Type of plan usually present in larger companies where the employer itself collects premiums from enrollees and takes on the responsibility of paying employees' and dependents' medical claims.