13
Mar

Self-insurance is found within extremely small organizations (those with less than 100 employees). Old-economy organizations have more realistic medical benefit thresholds of 1,000 employees before they “go self-funded.”


Answer:
Not sure if you have looked up on google what the definition of self funded insurance exactly means but I look at this from a standpoint of. When you have company insurance, the business has to typically pay a portion of the premium for the employees. Usually the company has to pay a minimum of 50 percent of the employees insurance benefits and they have the ability to opt to pay up to all the insurance premium. Problem is with a small company, they can’t afford to pay so much in cost for insurance so each individual in the company has to purchase their own insurance coverage if they want health coverage. Now when they speak of old economy, you have to remember that most companies in the older days were factories and to have more then 1000 employees was very common so they would go self funded insurance under 1000 versus 100 in todays world. Now, the only thing else I could think this could be making reference to is a cafeteria plan. Which is the company pools a certain amount of pre taxed dollars out of each employees paycheck to create a insurance pool for each employee, which at certain points in time, the company would go self funded cause they participated a installed balance to keep the pool at a certain level until the input was matched by employee with holdings, then it would go self funded. So depending on what you are studying, it could be a couple of things.

This entry was posted on Friday, March 13th, 2009 at 12:24 pm and is filed under Insurance. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or TrackBack URI from your own site.

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