Seven "Deadly Sins" To Avoid When Negotiating Self-Funded Benefit Plans

Corporate Counsel

PUBLISHED ON: August 18, 2006

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This article originally appeared in Anderson Kill's Self-Funding Advisor (Spring 2006).

Every year, an increasing number of employers decide to self-fund the medical benefits they provide to their employees. They are drawn to readily apparent advantages, such as up-front cost-savings, tax benefits and avoidance of state laws. Yet many employers may not fully understand the small print behind their self-funded benefits plans. In particular, they may not appreciate important nuances that can impact the three principal documents of self-funding: third-party administrator (TPA) agreements, stop-loss insurance policies and summary plan descriptions.