As health care costs continue to climb, employers are actively looking for ways to mitigate these costs. Some turn to cost-sharing methods, like offering high deductible health plans. Other U.S. employers are making the switch to self-insuring as a way to reduce costs and improve service. Self-insuring is not right for every organization. Employers considering a switch from insured to a self-insured health plan should analyze the advantages and disadvantages before making the switch.
This toolkit serves as an introductory guide to self-insurance. It provides a general overview of what self-insurance is, how it differs from fully funded health plans and its market trends. It is not intended as legal advice. You should consult a benefits consultant, legal professional or plan administrator before making the change to a self-insured health plan.