What are the different funding mechanisms for employers?
Self-insured medical plans are financed entirely by the employer from employer funds. No insurance coverage is purchased from commercial carriers, so employers take on all risk for paying claims. Typically only large employers do this.
Fully-insured medical plans are purchased by an employer from a commercial insurer. The insurer takes on all the insurance risk.
For dental plans, HealthPartners also has employer-sponsored (non-contributory) and voluntary (contributory) options.
Contributory plans employer passes the cost of the premiums on to employees or uses cost sharing approaches.
Non-contributory plan employer pays the full premium and does not require employee cost sharing.
