What is a self-funded plan?

A self-funded plan is a type of health insurance that is available in Washington. Unlike other types of health insurance, a self-funded plan is not offered by an insurance company, but instead is funded and managed directly by the employer. It allows employers to choose how much funding to put towards health care and other benefits, as well as what types of coverage to provide. Self-funded health plans are often more cost-effective than traditional health insurance plans, because employers are able to pass on some of the savings to their employees. Unlike traditional insurance companies, an employer can also keep any savings they make. The downside of self-funded plans is that the employer is responsible for any financial losses that occur as a result of health claims. This means that if the employer does not have enough funds to cover the costs of all the claims, the employee may have to pay additional out-of-pocket costs. Self-funded plans are an important option for employers in Washington who are looking to provide health insurance to their employees without incurring excessive costs. It can also be beneficial for employees, as it can provide them with more flexibility in the types of coverage they receive.

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What is a self-funded plan?

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