What does “self-insured” mean?
Q: What does “self-insured” mean for the Benefits of Film Plan?
A: "Self-insured" means the Benefits of Film Plan funds its own claims, rather than purchasing insurance from an external provider, ensuring direct control over benefits and costs for members.
Tom was taking a coffee break with his colleague Ben, who had recently joined the union. Ben was trying to make sense of some of the benefits terms he’d heard, and one phrase that kept coming up was “self-insured.” Curious, Ben asked Tom what it actually meant and why it was important.
Tom explained, “When a plan is self-insured, like our Benefits of Film Plan, it means that our union doesn’t rely on an outside insurance company to pay for our health expenses. Instead, the money for our coverage comes directly from contributions that we, and our employers, make to the plan.”
Seeing Ben still had questions, Tom continued, “Think of it like this: every hour we work, a portion of what the employer pays goes into a fund. This fund is managed carefully by the Board of Trustees, and it’s used to directly pay for our medical, dental, and other benefits. This way, all the money stays within the plan and supports members like you and me, rather than going to insurance company profits.”
Ben nodded, starting to understand. “So, that’s why our benefits feel so tailored to what we actually need in this industry?” he asked. Tom smiled, glad to see Ben making the connection. “Exactly,” he said. “Because we’re self-insured, the trustees can make decisions that are specific to our needs as film industry professionals. We’re not just another client to an insurance company—we’re our own community, looking out for each other.”
For Tom, explaining the self-insured nature of the plan was another reminder of the union’s commitment to supporting its members. And for Ben, it was an eye-opening moment that deepened his appreciation for what it meant to be part of IATSE Local 891.