Which entity may opt for a self-insured medical, disability, and death benefit plan in California?

Employers have the option to establish a self-insured medical, disability, and death benefit plan in California. This means that instead of purchasing insurance from a commercial provider, employers can take on the financial risk for providing these benefits directly to their employees. A self-insured plan allows employers greater control over the benefits offered, as well as the flexibility to customize these benefits to fit the specific needs of their workforce.

This option is commonly chosen by larger employers who have the financial resources to manage this risk and can benefit from potential cost savings in the long term. Self-insurance can also provide advantages such as improved cash flow management and the ability to tailor benefits without the constraints of traditional insurance policies.

In contrast, individuals typically do not have the resources or financial stability to self-insure, and insurance companies primarily focus on providing insurance coverage rather than offering self-insured plans. Federal agencies may have different regulations and structures governing their employee benefits, which does not typically include a self-insured model in the same way as private sector employers.