Policy Examples

• Self-funded employer sponsored health plans are subject to The Employee Retirement Income Security Act of 1974 (ERISA), which exempts private employers from most state laws including reserve requirements, mandated benefits, premium taxes, and many consumer protection regulations. source

Outcome Evidence

• Based on the 2019 Kaiser Family Foundation Employer Health Benefit Survey, 61% of covered workers are in a plan that is completely or partially self-funded. source
• According to the Business Benefits Group, the top four reasons employers choose to self-fund plans include cost savings from benefit design changes, increased flexibility and control of plan, enhanced flow of cash, and cost savings from reduced premiums. source