Which approach to providing health care makes the most sense when a company's financial burden of covering employee medical expenses is less than the cost to subscribe to an insurance company for coverage?

Question

Quizplus · Accepted Answer

Self-funding, also known as self-insurance, is the best option when a company's financial burden is less than the cost of subscribing to an insurance company. With self-funding, the company sets aside a portion of funds to cover employee medical expenses. The company has more control over the medical benefits offered, and any unused funds can be carried over to the following year. This approach can result in significant cost savings for the company.

Which Approach to Providing Health Care Makes the Most Sense