In an insured (or fully insured) plan, BlueCross BlueShield of Tennessee assumes the risk of claim costs and is responsible for funding claims with its own money. In an insured arrangement, the employer is not "at risk" for the claim costs, and pays BlueCross BlueShield of Tennessee a set premium amount as consideration for assuming that risk. Actual claim costs may be more or less than the premium amount; that is part of the "risk" that the Company is assuming.
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