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Insured Health Plan
Practical Law Glossary Item 6-505-0925 (Approx. 2 pages)
Glossary
Insured Health Plan
A health plan funded through the purchase of an insurance policy. Typically, an employer pays all or a portion of the premiums for the health insurance coverage and participating employees pay any remaining portion. The insurer:
- Assumes the risk of providing health care coverage for insured events by paying medical costs for any eligible claims incurred under the plan.
- Usually retains decisionmaking authority regarding whether to pay benefits.
A health plan without any self-funding component is known as a fully insured plan.