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[IP] insurance ??

What exactly is a self funded insurance plan?  Does the employee pay 100% of
the premiums?  Also...here is a question I've often wondered about, but
fortunately haven't been effected by yet.  I telecommute to my job in another
state.  If I live in WA state, would the law effecting coverage for diabetes
from WA apply, or would the laws in the state where the coverage is purchased
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