Trade associations of your business. Community business leaders. Benefit consultants or actuaries. Check with other users and state regulators on the history of the particular plan you are considering. With self-insurance, the business predetermines and then pays a portion or all of the medical expenses of employees in a manner similar to that of traditional health care providers.
Funding comes through establishment of a trust or a simple reserve account.
As with other health care plans, the employee may pay a portion of the cost in premiums. Catastrophic coverage is usually provided through a stop loss policy, a type of coinsurance purchased by the company. The plan may be administered directly by the company or through an administrative services contract. The advantages of self-insurance are listed below. Programs can be flexible.