Group insurance vs. self insurance

by mishanadia » Tue Sep 15, 2009 04:03 pm

Is it good for a compony of 60,000 employees who is budgeting medical claims to have a group insurance instead of self-insurance. And why?

Total Comments: 1

Posted: Wed Sep 16, 2009 07:40 am Post Subject:

We'd need to understand certain things over here. The self-insured employers are needed to meet claims with their own resources and thus hold their own risk. It's common with large employers who have more control towards the cost and benefit design.

Self-insured companies would often seem a bit different when their employees get cards from a health insurance co. Under such circumstances, the employer is paying the health insurance carrier towards adjudicating claims.

The employer will also be able to use the carrier's provider network, but the plan is still considered as 'self-funded' since the risk would still lie with the employer. I guess, this could be one good reason with your company as to why they could go for it.

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