Question

What does a larger employer do when they take the risk themselves instead of purchasing insurance for every employee?

a) Employer Insurance Purchasing
b) Employee Insurance Coverage
c) Employer Self-Insurance
d) Expensive Employee Insurance

Answer 1

c) Employer Self-Insurance. Employer self-insurance is when a larger employer takes on the risk themselves instead of purchasing insurance for every employee. They assume the financial responsibility of providing healthcare benefits.

Step-by-step explanation:

When a larger employer takes the risk themselves instead of purchasing insurance for every employee, it is referred to as employer self-insurance. Instead of relying on an insurance provider to cover the cost of healthcare for their employees, the employer assumes the financial risk of providing healthcare benefits. This means that the employer covers the costs of medical expenses for their employees directly, rather than relying on insurance coverage.