Which of the following is a pro of self-funding?

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Multiple Choice

Which of the following is a pro of self-funding?

Self-funding gives employers direct control over funding and managing health claims, which can lead to true lower total costs, because you avoid insurer loading and profit margins and can tailor plan design to actual needs. Owning the claims data also brings greater transparency, letting you analyze utilization and trends to tailor wellness and prevention efforts. With careful management and features like stop-loss protection, there can be long-term savings as you optimize benefits and costs over time. The other options describe outcomes that are not advantages of self-funding. A higher administrative burden and less transparency are typically seen as drawbacks, not benefits, because you take on more claims management and data handling. Less transparency and higher long-term costs would undermine the goal of self-funding, so they aren’t the pro.

Self-funding gives employers direct control over funding and managing health claims, which can lead to true lower total costs, because you avoid insurer loading and profit margins and can tailor plan design to actual needs. Owning the claims data also brings greater transparency, letting you analyze utilization and trends to tailor wellness and prevention efforts. With careful management and features like stop-loss protection, there can be long-term savings as you optimize benefits and costs over time.

The other options describe outcomes that are not advantages of self-funding. A higher administrative burden and less transparency are typically seen as drawbacks, not benefits, because you take on more claims management and data handling. Less transparency and higher long-term costs would undermine the goal of self-funding, so they aren’t the pro.

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