Can anyone tell me what self-insured means??
like for a company that is self-insured?? thanks
Self-insured usually refers to an individual buying their own health insurance, for example, because the employer does not provide coverage. Or it refers to a self employed person seeking insurance.
It means that you pay for your own health insurance not a group or employer.
It means. That your employer, who helps pay your insurance premium's, funds their own health insurance claims... & they simply pay your insurance company to 'process' claims. The money sent to your doctor's & hospitals comes from your employer's bank account.
Ultimately, its a way to allow an employer to pick & choose what benefits they want to provide, what they want to exclude, and also exempts them from following most state laws. Its also referred to as ASO funded, (administrative services only).
It means you pay for your own insurance, not through a company.
Answers:
Self-insured is where you have enough money available that you don't need insurance anymore. For example, if you had millions of dollars and you needed surgery that cost $100k, you have enough money to pay for it. You don't need health insurance. OR you die someday and you left millions of dollars to your family. Your family will be fine without you having to buy life insurance. OR where your home gets damaged, you got enough money to replace it.
Though, there's one insurance that you can't live without and that's car insurance. I think all states require people to have car insurance on their vehicles.
It means, they don't buy insurance, they pay out their own claims.
It's very common for very large companies to "self insure" for the first million dollars of auto insurance, general liability, property, and in states where it is allowed, workers compensation. Then they have a "risk manager" or sometimes a third party claims administratior that they hire (which CAN be an insurance company) to handle the claims, but THEY write the checks out of their own pocket.
For very large accounts, it's cheaper to pay claims themselves, than it is to buy insurance.
This can also mean self insured as in auto insurance.
In California, in order to be self insured, you have to put up a cash bond of I think $100,000 for non comercial vehiclaes. This way, you don't have to go through an insurance company, you pay claims against you through this bond.
that you have enough money that you can pay for anything that may happen to you. like a sickness...not being able to work etc.