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Self-funded health care, also known as Administrative Services Only (ASO), is a self insurance arrangement in the United States whereby an employer provides health or disability benefits to employees using the company's own funds. [1]
Efforts to allow trade associations to offer self-funded health insurance coverage, like large employers offer, finally succeeded in the Tax Cuts and Jobs Act of 2017. That change allowed ...
Of the subtypes of health insurance coverage, employer-based insurance remained the most common, covering 55.1 percent of the population for all or part of the calendar year. Between 2017 and 2018, the percentage of people covered by Medicaid decreased by 0.7 percentage points to 17.9 percent.
In particular, self-funded health care (whereby an employer provides health or disability benefits to employees with its own funds rather than contracting an insurance company [84]) is not a practical option for most small employers. [85]
Additionally, states regulate the health insurance market and they often have laws which require that health insurance companies cover certain procedures, [149] although state mandates generally do not apply to the self-funded healthcare plans offered by large employers, which exempt from state laws under preemption clause of the Employee ...
In the United States the concept applies especially to self-funded health care and may involve, for example, an employer providing certain benefits – generally health benefits or disability benefits – to employees and funding claims from a specified pool of assets rather than through an insurance company, as the term is traditionally used ...
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