IRS Section 125 allows employees to choose between different benefits, similar to a customer to choose among available items in a cafeteria. Qualified Cafeteria Plan Premiums are excluded from Taxable Gross Income. This saves a minimum of 15.3% in taxes paid (1/2 to the Employer and 1/2 to the Employee). A Cafeteria Plan cannot discriminate in favor of Highly Compensated Employees. See your accountant.
Agent of Record Form
Group Information Form
Self-funded health care (aka: self-funded insurance, self-insurance, or more colloquially, self-funding) is a type of insurance that is accomplished without the risk of transfer by which traditional insurance is defined.Self-funded health care is a concept involving an employer providing certain benefits - generally health benefits or disability benefits - to its employees and funding claims from a specified pool of assets rather than through an insurance company, as the term is traditionally used. In self-funded care, the employer ultimately retains the full risk of paying claims (although the risk is usually insured to certain levels), in contrast to traditional insurance, where all the risk is transferred to the insurer. Courtesy of Wikipedia
A Traditional Insurance Company and their Underwriter decide what risk You and Your Employees could potentially cost based on actuary tables. In a self-funded the Employer through the assistance of their Benefit Consultant, contracts with an Administrative Services Only (ASO) Company and an Insurer, a plan that is also Underwritten, and pays claims (funded by the employer) for a set Monthly Fee. Savings can reduce future liability increases. Always review with your accountant.