DoL Issues Self-Insured Health Plans Report

A news release said DoL estimates that 12,000 health plans filing a Form 5500 for 2008 were self-insured and 5,000 mixed self-insurance with insurance.  These plans, respectively, covered 22 million and 25 million participants.  Health benefit plans covering private-sector employees must file a Form 5500 if they cover 100 or more participants or hold assets in trust, the DoL said.

This report presents data on such plans for 2008, the latest year for which complete data is available.

Of the self-insured group health plans, approximately 4,000 offered only health benefits and approximately 8,000 offered other benefits in addition to health benefits. Of the mixed-insured group health plans, approximately 600 offered only health benefits and approximately 5,000 offered other benefits in addition to health benefits.

With respect to funding arrangements, of the 12,000 self-insured group health plans that filed, slightly more than 2,000 indicated a funding arrangement of a trust only, approximately 4,600 indicated a funding arrangement of general assets of the sponsor only, and nearly 4,400 indicated a funding arrangement of general assets of the sponsor combined with insurance.

Self-insurance is more common among larger sponsors, mainly because the health expenses of larger groups are more predictable and therefore larger sponsors face less risk, the agency explained. .

The DoL report is at http://www.dol.gov/ebsa/pdf/ACAReportToCongress032811.pdf.