If the employer operates its own health plan instead of purchasing a plan from an insurance company to cover its employees, what type of plan are they utilizing?

Question

Quizplus · Accepted Answer

The employer is utilizing a self-funded health care plan, which means that the employer pays for the medical expenses of their employees rather than purchasing insurance from an external provider. This can be cost-effective for employers who have a large pool of healthy employees and can potentially save money by not paying premiums to an insurance company.

If the Employer Operates Its Own Health Plan Instead of Purchasing