This document is about a study of the differences between firms that self-insure their group health plans and those that fully-insure. It analyzes how financial metrics and other firm characteristics are related to health benefit funding mechanisms, and constructs econometric models to identify the factors that may influence the selection of particular health benefit funding mechanisms. The study uses data from Form 5500 filings and firm financial information to document the prevalence of self-insurance among large health plans and the factors associated with the decision to self-insure.
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