Advantages of a self-insured plan

Customization

Employers can customize the plan to meet the specific needs of its employee group. Fully insured plans are "packaged benefits" that don't allow for variation from employer to employer. Some employers want more control over what is offered.

Control over claims reserves

The employer maintains control over the claims reserves. You don't pay until a claim is presented for payment.

Exemption from state insurance laws and premium taxes

In most cases, self-insured benefit plans do not have to comply with state insurance mandates and premium taxes.

When the plan has favorable claims experience, the profits remain with the self-insured plan

The opposite is also true. The employer assumes the risk for the plan.