When an employer chooses to “self insure” its health benefits, it assumes financial responsibility for paying claims incurred by its employees (as opposed to hiring an insurance company to do this). In addition, an employer that is self-insured may contract with a third party administrator to handle the processing of the medical and pharmacy benefits.
Unlike fully insured health plans, where three to one premium limits (capping premiums for older enrollees) apply, most self-insured plans do not have these limits. Additionally, ACA rules that prohibit a plan from excluding people from coverage or charging them higher premiums due to health status do not apply to self-insured plans.
The University’s move to Highmark for 2023 yielded savings that helped minimize the increase in health plan contributions for most employees in 2024. This approach also allows Penn State to maintain its commitment to pay 75% of employee health care costs. In addition, the University is maintaining its current “Lion Traditional” and “Lion Advantage” plan designs and adding a $20,000 optional life insurance option for all eligible employees.
As a result, employees earning less than $140,000 will see modest monthly increases in their contribution — between 43 cents and about $12 a month, depending on income and selected plan. These changes will take effect Jan. 1. Employees can use the Benefits Mentor decision tool in Workday to help them make decisions about their 2024 benefits and compare options before making any changes during open enrollment, which begins Nov. 6. Осигуровки самоосигуряващо се лице 2024