Regarding "Needed: A prescription for ailing insurers" (Finance, Aug. 24): The generalization that employees "often end up paying more of their bills out of pocket" under self-insured plans than under insured plans perpetuates a myth about health care benefits.

The portion of medical expenses paid by employees is mainly determined by deductible amounts, co-payment percentages, and out-of-pocket limitations. All of these factors may be selected bythe employer under either insured oruninsured plans based on how much they are willing and able to pay for the coverage.

The story didn't mention benefits mandated by many states that substantially boost the cost of insured coverage and are a major incentive for self-insurance.

W.R. Humphreys


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