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The Handbook of Employee Benefits: Health and Group Benefits 7/E by Jerry Rosenbloom

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CHAPTER 29Funding Health Benefits: Insured Arrangements

Richard L. Tewksbury, Jr.

The cost of health and welfare benefit plans has become a substantial budget item for employers, causing them to take steps that control plan cost and liabilities. Employers—particularly large ones—are demanding that conventional insurance products become funding arrangements that are used as corporate financing tools. In response, insurance companies and third-party administrators have designed a number of alternative funding arrangements for group insurance programs. This chapter first explains a conventional insurance arrangement, then highlights the development of alternative funding arrangements and describes each in detail.

CONVENTIONAL INSURANCE ARRANGEMENTS ...

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