How to Pay for Self-Insured Health Insurance in Texas?

Payments for self-insured (self funded) health insurance premiums in Texas are mostly made through the employer. That is, the payment is deducted directly from the employee’s pay. Other forms of payment used are check, bank draft, credit card, debit card, or electronic funds transfer (ETF).

Who Pays for Self-Insured Health Insurance?

The cost of a self-insured health plan is usually shared between the employer and the employee. First, employers in Texas are required to offer health plans that are not more than 9.61% of the employee’s household income. Also, the coverage provided will be considered “minimum standard value” if the employer pays above 60% cost of the plan. In 2021, the average percentage covered by employers was 83%, while employees paid the remaining 17% for individual plans. The average percentage of employers covered for family coverage was 72%, while employees covered the remaining 28%.

What are the Payment Options for Self-Insured Health Insurance?

You can pay through any payment method recommended by your plan administrator or employer. However, premiums of self-insured plans in Texas are directly deducted from the employee’s pay in most cases.

Can I Finance the Self-Insured Health Insurance Cost?

No, you cannot finance your self-funded health plan cost in Texas. Premium financing is usually done in rare situations for property & casualty insurance and life insurance. Majority of ACA-compliant health insurance plans are affordable, and enrollees of self-insured plans further enjoy the benefit of their employer helping with the payment of premiums.

To learn more about premium finance and how it works, speak with a licensed insurance agent in Texas.

How Often is Self-Insured Health Insurance Paid?

Self-insured health insurance plans are paid for every month in Texas. However, you might be able to speak to your employer or plan administrator about the possibility of making payments annually.

Is Self-Insured Health Insurance Paid Monthly or Yearly?

Self-insured health insurance is paid monthly.

Can Self-Insured Health Insurance Be Paid Annually?

Most self-insured health insurance premiums are paid monthly in Texas. However, it may be possible to negotiate a yearly payment with your employer or plan administrator.

Can New Self-Insured Health Insurance Cover Old Bills?

It depends. If your self-insured plan changed plan administrators or has a new plan administrator, it will still handle your old bills. But if your self-insured plan is an entirely new one due to your new employment or your company’s switch from fully insured to self-funded, it will not cover old bills.

In Texas, an insurer must handle every bill that arises when you are under their plan. Bills cannot be transferred to another plan. This is irrespective of whether the initial plan was canceled or whether the bills were overdue or outdated. The initial plan’s benefits continue to run on treatments and services you received when the policy was still active. Hence, you could get reimbursed for services you received but did not make a claim for under your previous health plan.

Inform the insurer when you get a bill meant to be handled by your previous plan. They will let you know what you need to do. Also, if you received coverage from different plans that overlapped at the time, you may need to check which plan was paid first.

How Do I Send My Self-Insured Health Insurance Bill?

Most health insurance bills are processed without the involvement of the insured, but sometimes they fall through the cracks of the billing process and may resurface at a later date.

All past bills from healthcare providers should be collected from whom you received treatment or services. You might request that they send you an email with a list of all of your scheduled appointments. Then go to your insurer and give them the information for processing.

If you are attempting to file claims under an old policy, you should consult with a Texas insurance agent or lawyer to guide you on the right steps to take.

Do I Pay My Self-Insured Health Insurance or My Doctor?

There are certain factors you need to consider in Texas. One is the cost-sharing agreement between you and your plan. Another factor is whether the doctor is an in-network or out-of-network provider. Normally, if you receive a service from a doctor within your plan provider’s network, you will pay the part agreed in your policy. However, it will not be a full payment. For example, if you have paid your deductible, you will only have to pay the copay or coinsurance as agreed, your plan will cover the rest of the cost. If the doctor is not in your plan provider’s network, you may have to pay the doctor and request reimbursement from your plan. The refund will be subject to your policy’s terms. Discuss with a Texas state-licensed health insurance agent to learn more.

Who Do You Pay a Self-Insured Health Insurance Copay to?

A copay is a small cost paid by the insured at the time of service, usually before being seen at the medical institution. The payment is made by the insured to the office where they are being seen. You can either have a copay or coinsurance in your policy.

Who Do You Pay Self-Insured Health Insurance Deductible to?

The deductible is the amount you pay out of pocket during the year before your plan provides coverage under the policy. Your deductible is reduced by the amount you pay for most covered services. Payments to medical professionals, pharmacies, and other medical essentials count towards the annual deductible.

After you have met your deductible, you can start paying copay or coinsurance, depending on your policy. Note that you will have low premiums if you have a high deductible. In the same vein, you will have a low deductible if you have a high premium.

Who Do You Pay Self-Insured Health Insurance Coinsurance to?

Coinsurance is the percentage of your medical cost that you are meant to cover yourself. You must pay the proportion indicated in your coverage to the medical providers and facilities you visit, just as you must pay the deductible. You may be requested to pay your coinsurance at the time of your appointment, or you may be billed for it later, usually by mail.

Do I Pay Taxes on Self-Insured Health Insurance?

No. You and your employer are exempt from federal income and payroll taxes. Furthermore, since self-insured plans are not regulated at the state level, your company does not pay state health insurance premium taxes.

Can You Pay Self-Insured Health Insurance Late?

Yes, as long as the payment is made during the grace period, you can pay self-insured insurance late in Texas. A grace period is the “additional time” you are given to pay your premiums to avoid your plan being canceled.

Note that paying self-insured health insurance premiums late is rare because premiums are usually deducted directly from your salary or wages.

Does Self-Insured Health Insurance Have a Grace Period?

Yes. Self-insurance has a grace period.

What is a Grace Period in Self-Insured Health Insurance?

The company or the plan administrator usually prescribes the grace period of self-insurance plans in Texas. Most health plans in Texas give a short period of 31 days for their enrollees to pay their monthly premiums, but for self-insured plans, the employers may allow up to 90 days.

Is There a Grace Period for Self-Insured Health Insurance After Termination?

Generally, there is no grace period for health insurance plans after termination in Texas. However, it is uncommon for self-insured plans to be terminated because of failure to pay premiums past the grace period because the employer deducts an employee’s portion of premiums from their pay.

What to Do if You Can’t Pay for Self-Insured Health Insurance?

You should first inform your employer of your inability to afford the plan, either through your plan administrator or the Human Resources Department. They may be able to devise a plan that allows you to afford the policy, or they may offer you discounts.

If you cannot pay for your self-insured health insurance plan, you may have to cancel your plan and switch to a low-cost plan that fits your budget. A popular option in Texas is a short-term insurance plan. Another option you have is to enroll in a bronze or silver plan from the Texas health insurance Marketplace. If you do this, you should check if you qualify for premium subsidies to help further reduce the cost of your premiums. You can also determine if you qualify for the hardship exemption to get a catastrophic plan from the marketplace.

Another option you have is to sign up for Texas Medicaid. This is a federal-state health-assistance program that helps people with limited income and resources pay for medical expenses. You can verify if you qualify for or apply directly for Texas Medicaid on the Texas Benefits website or call 211 or (877) 541-7905. (711 for TTY). For more information, you can also call any of the numbers.

In all, your best option is to consult a professional insurance agent in Texas about your options based on your specific situation. An agent will be able to provide you with the finest advice on what you should do.

Will My Self-Insured Health Insurance Lapse if I Miss a Payment?

No. Your self-insured plan does not lapse if you miss a payment in Texas. However, your plan will lapse because of non-payment of premium beyond the grace period. Thus, if you miss a payment but are still inside the grace period, you can still pay and continue to be covered by your plan. However, it is rare to see a self-insured health plan lapse because of late payments. This is because the employer takes out the money directly from their employee’s pay.