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Self-Funding: A Viable Alternative to Group Health Plan Funding
Cost components of Insured vs. Self-Funded Plans
 
  Insured Plan     Self-Funded Plan
  Expected Claims   Expected Claims
  Margin for higher claims than expected   Not Applicable
  Reserves for future claims   Not Applicable
  High Administrative Expenses   Low Administrative Expenses
  Insurer’s Profits charge   Not Applicable