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

question 18

Multiple Choice

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

• A) Is a contributory plan
• B) Is subject to collective bargaining 20
• C) Is unable to secure discounts from the physicians who provide medical services to the plan members
• D) Has a relatively high frequency of low severity claims

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Definitions:

Effort

The use of physical or mental energy to achieve a goal or accomplish a task.

Personal Constructs

Cognitive structures individuals use to interpret and predict events, prominently featured in George Kelly’s personal construct theory.

Cognitive Scripts

Mental representations of sequences of events or actions, guiding behavior and understanding in specific contexts.

Hierarchy Of Needs

A theory in psychology proposed by Abraham Maslow, which outlines a five-tier model of human needs, from basic physiological needs to self-actualization.