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Self-Directed Health Plan

A health insurance plan, usually a PPO, which provides "up-front" cash (e.g., $250 each calendar quarter) to pay for certain medical expenses before the deductible, coinsurance or copays are required. The usual list of expenses eligible for up-front cash payments includes preventative care (e.g., checkups and immunizations), routine care (e.g., office visits and simple blood tests) and some prescriptions. In some SDHPs, up-front cash that is not paid out in the allotted timeframe is rolled forwarded and added to the amount in subsequent periods.

an employer will pay for employees' health care costs out of a fund that the company has set aside for medical expenses. Employers may contract with an outside organization, often an insurance company, to administer the plan. Under a federal statute known as ERISA, the U.S. Department of Labor has authority over self-insured employer health plans. Therefore, New York's consumer protection and insurance laws do not apply.

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Self-Directed
Health Plan (SDHP)

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