Hedy Jarwono

Self-insurance means a business sets aside its own funds to cover claims like liability, auto, or property losses instead of paying premiums to an insurer.
The setup typically uses a dedicated fund, while internal staff or a third-party administrator processes claims, monitors activity, and pays covered damages directly.
Potential advantages include avoiding premiums and some insurer fees, while gaining more control over limits and cash flow inside the business overall.
The tradeoff is greater financial exposure, especially after a catastrophic loss, plus the added work of claims processing and ongoing legal compliance requirements.
Self-insurance may fit businesses with strong reserves, higher risk tolerance, and a hands-on approach, while risk-averse owners may prefer traditional coverage instead.

How Small Businesses Can Self-Insure

From 2016 to 2022, voluntary Medicare Advantage plan switching within Medicare Advantage rose sharply for dual-eligible enrollees and climbed more modestly for other beneficiaries.
Fully dual-eligible switching within Medicare Advantage moved from ~12% to ~22%, partial dual-eligible from ~17% to ~30%, and other beneficiaries from ~10% to ~13%.
By 2022, moves from Medicare Advantage to traditional Medicare stayed rare: ~4% for fully dual-eligible beneficiaries, ~2% for partial dual-eligible, and <1% for other beneficiaries.
Switching varied by age, risk, and race or ethnicity. Older beneficiaries generally switched less within Medicare Advantage, while highest-risk enrollees more often chose traditional Medicare.
The findings suggested more beneficiaries changed plans, likely changing provider networks and plan features, while dual special needs plan enrollees were less likely to switch.