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What is a “self-insured” health plan?

A self-insured plan is a health plan offered by an employer who collects premiums from employees and assumes the responsibility and financial risk of paying the employees' and covered dependents' medical claims. Employers that offer self-insured plans tend to be large companies. They may purchase stop-loss coverage from a reinsurer who agrees to bear the risk (or stop the loss) for those expenses exceeding a predetermined dollar amount. Some self-insured employers contract with an insurance company or third party administrator for claims processing and other administrative services. Other self-insured plans are self-administered. 

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Important: This content reflects information from various individuals and organizations and may offer alternative or opposing points of view. It should not be used for medical advice, diagnosis or treatment. As always, you should consult with your healthcare provider about your specific health needs.