What is a self-funded health plan?
A self-funded (or self-insured) health plan is one in which the employer assumes some or all of the risk for providing health care benefits to his employees. He takes control of the assets of his plan, invests them to his advantage, and eliminates the insurance company charges. He can completely redesign the plan if he wants. When he decides to self-fund his health plan(s), the employer usually checks to see how well the insurance company has administered his plan. If he is not satisfied, this is the time to change administrators.
