Employees in Private, Self-Insured Health Plans Continue to Increase

In 2011, roughly 58.5 percent of workers with health coverage were in private sector self-insured health plans — a significant jump from 40.9 percent in 1998, according to a study from the Employee Benefit Research Institute (pdf).

Self-insured health plans are plans where the employer acts as its own insurer and directly pays healthcare claims to providers instead of purchasing health insurance from a traditional insurance company.

The EBRI found that large employers with 1,000 or more employees have driven the upward trend in self-insured health plans. On average, only 12 percent of employees at small companies (fewer than 50 workers) are in self-insured plans.


Here are other major findings from the EBRI's study:

•    While 58.5 percent of employees were in self-insured plans in 2011, figures vary greatly among different states. For example, only 30.5 percent of employees in Hawaii were in self-insured plans compared with 73.8 percent of employees in Minnesota.

•    In 2010, self-insured plans covered 57.5 percent of employees.

•    The largest jump in the percentage of private-sector workers in self-insured plans occurred from 1999 to 2000. In 1999, only 41.2 percent of workers were in those plans, and the next year, that total spiked to 48.3 percent.

More Articles on Workers and Health Plans:

Health Premiums Grow at Lowest Rate in 6 Years

Employer-Sponsored Health Premiums Rise 4 Percent From 2011

Survey: 88% of Employers Plan to Continue Health Coverage

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