Large employers who assume the financial risk for providing health care benefits to employees do not pay a fixed premium to a health insurance payer, but establish a trust fund (of employer and employee contributions) out of which claims are paid. This concept is called __________.

Question

Quizplus · Accepted Answer

Self-insurance is when large employers take on the financial risk of providing health care benefits directly, using a trust fund to pay claims instead of paying fixed premiums to an insurance company.

Large Employers Who Assume the Financial Risk for Providing Health