The health and dental self-insurance program instituted in the Waukegan (Illinois) Public Schools can credit three major factors for much of its success. First, claims are processed in-house by the district, resulting in improved communications about claim decisions, faster payments, and higher employee satisfaction. Second, the plan is coordinated by a governing board of five persons representing all employee groups. Third, the plan includes cost containment provisions (1) encouraging outpatient testing prior to surgery, (2) restricting weekend hospital admissions, (3) providing for review of large hospital bills by the employees served, (4) limiting payments for drug and alcohol treatment, (5) covering costs for physical examinations and diagnostics, and (6) paying for second opinions. (PGD)