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Fully Insured Plans

Meaning

Fully Insured Plans represent a traditional health benefit arrangement where an employer purchases a health insurance policy from a licensed commercial insurance carrier to cover the healthcare costs of their employees. Under this model, the insurance carrier assumes the financial risk for claims incurred by the covered population in exchange for a fixed premium. This structure contrasts sharply with self-funded models, offering a different regulatory environment, particularly concerning the application of State Insurance Laws.