Not a matter of admitting defeat, but rather difficulty in understanding the difference that you insist exists in the face of statutory law that in effect results in no difference.

Do you deny that the statute I cited clearly labels the system as insurnace even if self funded...subject to the same enforcement by the State Insurance Commissioner as a purchased policy ...and requires an  efficient claims administration process? So wherein lies this difference? Whether you purchase a policy or pay the funding directly for claims the result is the same.

You have lost sight of the issue. The auto insurance analogy was cited as an example of an insurance that is an area subject to government regulation in much the same manner as health care insurance. Clearly it is ... whether provided by an insurance carrier or a self insured plan.