In the news this week, insurance experts commented on proposed legislation by California Insurance Commissioner Dave Jones regarding self insured plans for small employers. The Self-Insurance Industry Institute of America defines self insurance:
Self-Insurance (also referred to as self-funding) is an alternative risk transfer strategy used by tens of thousands of employers across the country to finance their group health care and Workers’ Compensation liabilities. Self-Insurance has become an increasingly attractive option for many employers due to the rising costs associated with health care and Workers’ Compensation commercial insurance.