What is typically a feature of self-funded health insurance plans?

A feature of self-funded health insurance plans is that data analytics is utilized to manage claims and costs effectively. In a self-funded plan, the employer assumes the financial risk of providing health benefits to employees rather than paying a fixed premium to an insurance carrier. This means that the employer directly pays for the actual claims incurred by employees.

To navigate this financial risk and ensure the plan's sustainability, employers often leverage data analytics. Analyzing claims data allows employers to monitor health trends, identify high-cost claims, and allocate resources more efficiently. This proactive approach helps in making informed decisions about plan modifications, wellness initiatives, and cost management strategies. By utilizing data, employers can also forecast future costs and adjust funding levels accordingly, thereby enhancing financial predictability.

The other options do not accurately reflect typical characteristics of self-funded plans. For example, while employers do not pay fixed premiums, they do incur claims costs. They maintain a degree of control over vendor selections, but this is often more nuanced than complete control, as they may still rely on third-party administrators for claims processing and management. Costs in self-funded plans can vary significantly, making them less predictable compared to fully insured plans, which usually offer fixed, predictable premiums.