Everything that is provided in a conventionally fully insured program is duplicated in the partially self-funded group health insurance plan.

Everything that the insurance company does when it offers a conventionally insured program takes place in the partially self funded program. The difference is that with the self funded plan the employer holds the cash needed to fund benefits, and instead of sending the fully conventional premium to the insurance company, only a small fraction of the conventional premium is sent in to a reinsurance carrier.

The employer purchases reinsurance or medical stop loss for protection, holds the remainder of the claim funds), invests them, segregates them if desired, or uses them for general business purposes until they are needed for the funding of claims. The employer retains and keeps the funds when claims do not materialize.