---
title: "What is a Self-Insured Health Plan?"
description: "Self-insured companies pay for employee health insurance claims directly, either out of pocket or through special funds earmarked for this purpose. This means that the company assumes a financial risk for each employee and does not have a traditional “fully-insured”…"
url: "https://civhc.org/docs/what-is-a-self-insured-health-plan/"
updated: "2017-08-22"
category: "Self-Insured"
---

# What is a Self-Insured Health Plan?

Self-insured companies pay for employee health insurance claims directly, either out of pocket or through special funds earmarked for this purpose. This means that the company assumes a financial risk for each employee and does not have a traditional “fully-insured” plan through a commercial insurance company. Some self-insured plans are subject to the federal Employee Retirement Income Security Act (ERISA) standards while some are not. More information can be found at the Self-Insurance Institute of America ([www.siia.org](http://www.siia.org/)).