Self-Insured(or Self-Funded)Plan

SA self-insured (or self-funded) plan is a group health plan under which the risk for the cost of the benefits provided is borne by the sponsoring employer or union. The employer or union may hire a third party administrator to perform such services as paying claims, collecting premiums, or supplying other administrative services), but the financial liability for the cost of the benefits provided remains with the employer or union. Typically, a self-insured plan will purchase stop-loss insurance to limit its financial liability to a certain level.