There are many reasons employers have self insured their medical plan:
- The employer can customize the plan to meet the needs of their employees and their budget requirements.
- The employer can take advantage of interest income that would otherwise be held by the insurance company.
- The employer does not pre-pay for services provided only services that are provided are paid by the employer.
- More dollars go to health care services.
- The employer is not subject to state mandated benefits only federal ERISA.
- The employer will benefit from disease management and wellness initiatives.
- Provides the ability to offer employees in different states the same medical plan.