By: Larry Gilmore

Larry Gilmore — Mon, 10 Jun 2013 15:19:49 +0000

How does a self funded health insurance plan work? For the employee or plan participant, there is absolutely no difference in how a self funded plan and a regular health plan. The difference is behind the scenes. A self funded plan does not pay a premium to an insurance company for benefits, instead the funds are kept in house. The company may hire a third party administer to handle claims, but costs are picked up by the employer. Most companies that self insure also pay for "stoploss" insurance, which is a high deductible plan that kicks to pay claims for a large claim a employee may incur.

New answer on: How Does A Self-Funded Health Insurance Plan Work?

By: Larry Gilmore