Self-Funded
This type of group plan has many benefits especially for small groups. A portion of the premium is set aside to pay for care. If this portion is not used up over the year, a rebate can be credited back. Still has a major insurance company insuring the group, using a network of doctors with negotiated pricing plans, and covering expenses that go beyond the stop loss amount in the premiums. A great plan for certain small groups.
Health Reimbursement Arrangement
Small employers that wish to contribute to their employee's health care costs for eligible expenses can save money and gain tax advantages by using an ICHRA or QSEHRA. Dollars given to employees are not taxable to employers or employees. Management of the HRAs can be done by professionals.