Research Report Factors Affecting Self-Funding by Small Employers: Views from the Market
Kevin Lucia, Christine Monahan, Sabrina Corlette
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Policy experts predict that small employers, especially those with younger and healthier employees, will increasingly establish self-funded health plans, leaving the traditional fully insured market to obtain lower premiums and avoid market reforms under the Affordable Care Act. Through interviews with stakeholders in 10 study states, this paper describes factors that may influence whether and how extensively this change occurs. It also shows that states have minimal data on this potentially growing market, but they would be well served to improve their monitoring efforts so they can identify any increases in small group self-funding and resulting adverse selection, and respond appropriately.
Research Areas Health and health care
Tags Health insurance Federal health care reform Private insurance
Policy Centers Health Policy Center