The Benefits Of Self-Funded Health Plans

Self-funded health plans are a different way to pay for group health insurance while offering identical benefits to employees. Employers with a self-funded health plan are often described as “owning” their health plan while employers with fully insured plans “rent” the plans of health insurance companies until an employer choose a different plan structure or a plan gets too expensive, prompting a change to another carrier. A self-funded health plan uses a third-party administrator to provide all of the services a fully insured health plan provides (like managing all of the claims paperwork and providing participant service) and to ensure the plan complies with government regulations.