Our Core Medical Plans Are Self-funded A self-funded or self-insured medical plan is one in which an employer takes on most or all of the cost of medical claims. Our insurance company, Blue Cross of Idaho (BCI), manages the payments, but the Company and associates are the ones responsible to pay the claims. Self-funding our core medical plans (EPO, HSA and PPO) provides us with more flexibility to meet the healthcare needs for our associates. It also provides an opportunity to get money back at the end of the year if our total claims are less than the money we set aside during the year to pay claims and administrative expenses. Claims payment: Associates and family members receive care from doctors, hospitals and specialists, and get prescriptions at our own pharmacies or other network pharmacies. Claims incurred are paid directly from the monthly amount Albertsons sets aside to pay claims. Claims payment: Employees and family members receive care from doctors, hospitals and specialists, and get prescriptions at network pharmacies. The insurance company processes claims and pays all provider bills according to the insurance carrier’s rules. Self-funded plan Fully-insured plan Monthly cost: Albertsons pays a specific amount to be set aside for administrative fees and our associates’ and family members’ expected hospital and doctor bills each month. Monthly cost: An employer pays an insurance company a monthly insurance premium. The premium collected is used to pay claims for employees and family members, and pay administrative and overhead costs. Money back: At the end of the year, the total monthly cost set aside is reviewed against the total claims and administrative fees paid out for the year. Any amount left over is returned to Albertsons which can be used to offset future increases to associate premiums or to invest in other benefits for our associates. No Money back: At the end of the year, the insurance company keeps all premiums collected during the year. Any amount leftover after paying all claims and administrative costs is profit for the insurance company. 4 Before You Go How You Pay for Care Special Programs and Services Learn More
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