Hausmann Group March 11, 2025 2 min read

Group Health Plan Funding Options - Definitions

ICHRA (Individual Coverage Health Reimbursement Arrangement)- allows employers to reimburse employees for individual health insurance premiums and qualified medical expenses using pre-tax dollars.
Fully Insured - employer pays fixed premiums to an insurance company, which then assumes the responsibility for covering employees' medical claims.
HSA (Health Savings Account) - a tax-advantaged savings account designed to help individuals save for medical expenses.
HRA (Health Reimbursement Arrangement) - an employer-funded plan that reimburses employees for qualified medical expenses and, in some cases, insurance premiums.
Level Funded - combines elements of both fully insured and self-funded plans.
Captive - a group of companies pool their resources to self-insure their employees' healthcare costs.
Bundled Self-Funded - an employer partners with a single vendor to provide a comprehensive package of services, including claims administration, stop-loss insurance, and network access.
Unbundled Self-Funded - an employer separately contracts with multiple vendors for different components of the plan, such as claims administration, stop-loss insurance, and network access.
Fully Self-Funded (with no specific or aggregate stop-loss insurance) - the employer assumes the entire financial risk for their employees' healthcare costs without any insurance to cap or limit those costs.
Reference-Based Pricing - reimbursement rates for medical services are based on a specific reference point, such as Medicare rates, rather than the provider's billed charges.