Which of the Following Is True of Self-Insured Plans

question 93

Multiple Choice

Which of the following is true of self-insured plans?

• A) They are regulated by the Employee Retirement Income Security Act (ERISA).
• B) They use third-party administrators.
• C) They assume the financial risk of providing benefits for employees or members.
• D) They do not abide by state insurance regulations.
• E) all of the above.

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Definitions:

Make or Buy

A decision-making process used by companies to determine whether they should produce goods internally or purchase them from an external supplier.

Indirect Spend

Expenses incurred for materials, services, and maintenance that do not directly contribute to the production of goods.

Direct Spend

Expenses directly tied to the production of goods or services, such as raw materials and labor.

Outsourced

The practice of having certain job functions or processes handled outside of the company, typically by a third party, to reduce costs or focus on core competencies.