Self funded or self insurance programs are health insurance programs that are implemented and controlled by the company itself. They retain all of the risk in providing health insurance to their employees by paying any claims from their employees. Both the employee and employer pay into the fund.

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Self-funded or self-insurance programs are indeed health insurance schemes where the employer assumes the direct risk for payment of the claims for benefits. The company pays for out-of-pocket claims from a designated fund, into which both the employee and employer may contribute, rather than purchasing a fixed health insurance policy from an external carrier.

Self Funded or Self Insurance Programs Are Health Insurance Programs