What does self-funded mean?
With the exception of the employee life insurance program, BSSP programs are self-funded. Self-funded means the JPA funds the cost of claims with its own dollars. BSSP also bears the risk of the premiums collected being less than the cost of claims. Although providers and members see Anthem Blue Cross, Delta Dental or VSP on the insurance cards and explanations of benefits, BSSP pays the full cost of all claims and Anthem, Delta and VSP only profit from the administration of the claims. When claims are less than expected, BSSP members benefit by reserving those dollars to offset future increases.
