FREQUENTLY ASKED QUESTIONS ON SELF-FUNDED PLANS

What is a fully insured health plan?
What is a self-funded health plan?
Why do employers self fund their health plans?
With what laws must the self-funded plan comply?
Is self-funding for everybody?
What is excess-risk (or Stop-Loss) coverage?
Do I have to redesign my existing health plan?
What about payroll deductions?
Will my life insurance coverages be affected by self-funding my health plan?
Who will take the place of the insurance company to administer the plan?
What are the advantages in using a TPA?
Do TPAs do as good a job, or a better job, than insurance companies??
Why should I self-fund my health plan?

Do TPAs do as good a job, or a better job, than insurance companies??

A large majority of employers responding to a survey expressed satisfaction with the quality and timeliness of their TPAs' claims processing and data reporting. Of course, the quality and capabilities of individual TPAs vary just as the quality and capabilities of insurance companies vary. Each employer must individually evaluate the TPAs under consideration.

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