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 this advantage, and eliminates the insurance company...
A fully insured health plan is one where the employer pays a premium to an insurance company for employee health coverage. The insurance premium is due in advance of the coverage and is actuarially projected to cover anticipated claim costs and the insurance company’s overhead,...
The self-funded plan comes under all relevant federal laws, none of which is specifically for self-funded plans. Depending on the company’s lone of business and size, the federal laws applicable to health plans are ERISA, COBRA, the Americans with Disabilities Act, the Pregnancy Discrimination Act,...
