The purest form of a self-funded benefit plan is one in which the employer pays benefits from current revenue, administers all aspects of the plan, and bears the risk that actual benefit payments will exceed the expected amount of payments. A decision to use this kind of self-funding is generally considered most desirable when certain conditions are present. These conditions most likely include that the benefit plan

Question

Quizplus · Accepted Answer

A self-funded benefit plan is most desirable when there is a high frequency of low severity claims, as it allows the employer to manage costs effectively and reduce the risk of large, unexpected expenses.

The Purest Form of a Self-Funded Benefit Plan Is One