BUSINESS OPERATIONS the employees since they have to switch providers and care in many cases, leaving them feeling less secure and comfortable. FULLY INSURED VS. SELF-INSURED PLANS The two main funding options for businesses when it comes to providing coverage to employees are fully insured or self-insured plans. In a self-insured plan, the employer assumes at least some of the financial risk of providing healthcare benefits, whereas under a fully insured plan, employers pay a fixed premium to a third-party commercial insurance carrier that covers the medical claims. The fully insured plan is the traditional insurance model in which employers purchase a policy from an insurance company. While this is considered convenient, it is often less flexible and more prone to premium increases to match external factors. HEALTH BENEFITS FUNDING BASICS WWW.ARPMINC.COM / 17
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