Self-Insured Employer-Are They "Off The Hook" for paying a larger settlement?

Is it true that if my employer chose to insure himself instead of hire an insurance company - that when it comes to settling a worker's comp case, they will be excused from paying a higher settlement award because they are self insured in Pennsylvania? If it is true why are they 'let off the hook" because they chose to insure themselves?

That depends . . . e.g., if the company has any insurance on anything, i.e., vehicles, building, etc., then a lawsuit can possibly "bridge" the self-insurance to dip into the other insurance policies. That is something you will need a lawyer for. Hire one -- they know where the money is buried and how to dig it up because that is their job! Where money is concerned, they are better than bloodhounds.