Employee benefits – Self-funded health insurance may be a healthy option

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Abstract: Because of rapidly rising health insurance premiums and shrinking budgets, some contractors are choosing to forgo offering health care benefits to their employees as a way to save money in a down economy. But a number of alternatives can reduce their financial burden while still giving their employees access to the health care services they need. One such route is the self-funded health insurance plan. This article discusses how it differs from commercial insurance, the risks and rewards, and the obligations involved. A sidebar discusses what to look for when choosing a third-party administrator for a plan.