What does Self-Funded Health Insurance Plan mean? Read on to discover the definition & meaning of the term Self-Funded Health Insurance Plan - to help you better understand the language used in insurance policies.
Self-Funded Health Insurance Plan
A self-funded health insurance plan is coverage provided by an employer for their employees. Instead of purchasing the plan through an insurance company, however, this plan is entirely funded by the employer. The aim of the self-funded insurance plan is to cut costs, especially for large companies.
More Insurance Terms And Definitions
The Merriam-Webster Dictionary defines insurance as:
b: Coverage by contract whereby one party undertakes to indemnify or guarantee another against loss by a specified contingency or peril.
c: The sum for which something is insured.
We hope the you have a better understanding of the meaning of Self-Funded Health Insurance Plan. If you are looking for the meanings of other important insurance terms and their definitions, just click on the letter below to find the words & concepts you are looking for: