Health Insurance - Self-Insured Plans
Employers may offer both self-insured and fully insured plans to their employees. A self-insured plan refers to a plan that is offered by an employer who directly assumes the major cost of health insurance for its employees.
Some self-insured plans bear the entire risk, while other self-insured employers insure against large claims by purchasing "stop-loss" coverage. Stop-loss coverage is a form of reinsurance for self-insured employers that limits the amount the employers will have to pay for each person's health care (individual limit) or for the total expenses of the employer (group limit).