What is a primary aspect of a self-insured employer's healthcare strategy?

A primary aspect of a self-insured employer's healthcare strategy is assuming the financial responsibility for employee healthcare benefits. This means that instead of purchasing traditional insurance plans where the risk and costs are transferred to an insurance company, the employer takes on the obligation to pay for claims directly. This approach allows employers more control over their healthcare costs and benefits, as they can design their plans to fit the specific needs of their workforce.

Self-insurance often involves setting aside a certain amount of funds to cover expected medical expenses, and it may also include the use of stop-loss insurance to protect against unexpectedly high claims. This strategy can lead to cost savings for the employer, especially if employee healthcare costs are lower than anticipated, and it provides flexibility in how benefits are structured.

Employers who choose self-insurance typically do so to better manage their healthcare expenses and to tailor benefits in a way that directly aligns with their company's goals and the needs of their employees.