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Health insurers are predicting an increase in self-funded health insurance plans by U.S. employers in response to the Patient Protection and Affordable Care Act (PPACA).

According to a study released Monday by Munich Health North America, a subsidiary of reinsurer Munich Re, employers are expected to increasingly do away with providing group health insurance to their employees and are expected to instead self-fund their plans.

“The trend toward self-funding stems from employers’ desire to maintain a level of flexibility and control in the design and financing of their employees’ health benefits,” said Richard Phillips, president of Munich Health North America’s Reinsurance Division.

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