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

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What is Job Sharing?   ‘Job Sharing’ refers to the practice of sharing a job designation between two or more employees which is traditionally undertaken

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Candidate Experience

What is Candidate Experience ? The ‘Candidate Experience’ refers to the overall experience of the candidate with a company, especially related to the recruitment process.

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