What does it mean that EMU is “self-insured,” and why is that important?
Self-insured means that EMU pays the actual costs of claims for EMU covered employees. This is important because almost 95% of the $16 million of 2005 health care costs are for actual claims of covered employees that are paid by the University. The remaining 5% of the total cost paid by the University is for administrative fees to the healthcare vendors and stop-loss insurance premiums. Stop loss insurance is insurance purchased by the University to avoid unpredictable risks and very large claims. For any claims that exceed the stop loss limit (ex. $175,000 per contract member per month), this insurance will provide reimbursement to the University.
