Self-funded health plans pay premiums to?

Self-funded health plans, often referred to as self-insured plans, operate on the principle that the employer assumes the financial risk for providing health care benefits to its employees. Unlike traditional insurance arrangements, where premiums are paid to an insurance carrier or managed care organization for risk coverage, self-funded plans rely on the employer's resources to pay claims directly as they are incurred.

In this setup, the employer does not pay premiums to any insurance entities since they are effectively acting as their own insurer. This arrangement allows employers more control over their health care costs and benefits, and they can potentially save on premiums that would typically go to an insurance carrier or managed care organization.

Therefore, the correct understanding lies in recognizing that as self-funded plans retain the risk and responsibility of payment, the employer does not make outgoing payments in the form of premiums to any outside entity.