Self-Funded (Self-Insured) Plan

What is a Self-Funded (Self-Insured) Plan?

 

‘Self-Funded Plan’ or ‘Self-Insured Plan’ refers to a kind of medical insurance plan in which the employer pays for any amount the employee had to incur as medical expenses instead of paying premiums for legacy medical insurance coverage.

 

As the charges incurred via this method are more than the traditional medical insurance and are being paid by the company, companies generally provide self-funded plans for senior executives only.

 

Contrary to a traditional insurance plan, the employee is not required to pay any amount as the premium in this case as the entire financial liability is handled by the employer themselves.

 

More HR Terms

What is Vestibule Training?

What is Vestibule Training? Vestibule training is one of the practical methods of training that involves developing a replica of the actual work environment and

Chief Information Officer (CIO)

What is Chief Information Officer (CIO)?   The ‘Chief Information Officer’ or CIO is the position given to the most senior individual handling the overall

Contact Us

Contact Us

We use cookies on our website to provide you with the best experience.
Take a look at our ‘privacy policy’