From Employee Benefits Advisor:
Although self-insurance isn’t new — it began back in the 1970s with larger employers began exploring new ways to manage soaring healthcare costs — the movement has spread to mid-size employers steadily as costs continued to rise by double digits year after year. More recently, the passage of the Affordable Care Act gradually helped spread self-funding to small employers.
“The passage of the ACA had the indirect result of encouraging more employers to look at self-insurance,” says Michael Ferguson, president and CEO of Self Insurance Institute of America. “Generally speaking, we can say that the ACA has created increased pricing for mid-market employers and created uncertainty in the marketplace for employers who want to provide the benefit.”
Today, more than 90 million employees get health benefits through self-funded plans.