A self-insured reimbursement plan is a type of insurance plan in which a company reimburses its employees for medical expenses rather than paying premiums to an insurer to do this on the company's behalf. Companies often choose to create self-insured reimbursement plans when they think that the cost of insurance company premiums are too high.
Self-insured reimbursement plans can be more difficult for companies to set up and run, but they still can potentially save the company money. These types of plans often provide benefits for family members of company employees in addition to the actual employees. With a self-insured reimbursement plan, employees file their claims with their company of employment instead of with an insurance company. He or she will receive reimbursement for covered medical expenses with either insurance method, however.
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