This is a financial settlement issue. There are two primary types of insurance. The first is a fully insured product in which an outside carrier, such as Blue Cross and Blue Shield, assumes all the risk of any and all health insurance claims. The employer would pay the insurance company a flat amount of money per month, per employee. Here, the insurance company assumes all of the claim risk. A self-insured product means that the employer assumes the risk for all the insurance claims. The employer pays the insurance company only an administrative fee. The insurance company bills the employer every week for all the claims that they paid during that week. Here, the employer assumes the risk for all of the insurance claims incurred by its employees.
Some of the self-insured products the University offers its employees are: State Plan 3 Plus, Iowa Select, CHIP II, UI Choice, UIGRADCare, Student Health Insurance Plan (SHIP), and dental insurance. Products that are handled through a managed-care organization are fully insured, such as United, Blue Access and Blue Advantage.