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This is not what the parent is talking about. "Corps that self insure" is corporations that are so large that it's more effective for them to use a large bank a
by ohazi 7y ago
This is not what the parent is talking about. "Corps that self insure" is corporations that are so large that it's more effective for them to use a large bank account as the insurance plan for their employees than to buy a corporate policy from an actual health insurance company.
Huge companies like SAP or Microsoft or Oracle will do this, even though they may also hire a traditional branded health insurer to "manage" this large-bank-account health plan (i.e. give out cards, negotiate with hospitals, etc.). But the bank account (brokerage account, really) remains in control of the corporation, and the traditional plan premiums are not paid to the health insurance company named on the card. Fees for managing the plan are paid separately. Doctors and hospitals get paid from the corporation's account. This is what the parent means when they say that the corporation has visibility into employees' healthcare usage.
- wmfiv 7y agoJust so it's clear to everyone, companies much smaller than SAP or Microsoft self insure. In the United States virtually every employer with more than 500 employees is going to self insure. And while these companies do have access to detailed claim data in theory, in practice access to this data is typically heavily limited a small number of HR or finance employees who are responsible for healthcare accounting and financial management and the data presented is typically restricted to a large claim report within a monthly/quarterly reporting period.