What characterizes a self-insured employer?

A self-insured employer is characterized by assuming the financial risk for healthcare benefits instead of purchasing insurance from an external provider. This means that the employer directly pays for the healthcare costs incurred by its employees, which allows for greater control over the plan design and management of funds.

By self-funding their healthcare benefits, employers can potentially save on costs associated with insurance premiums, as they are only responsible for the claims that arise. This approach also allows for customized health benefit plans that can better fit the needs of their workforce compared to standardized insurance policies from third-party providers.

The other choices highlight aspects of traditional insurance models or policies that do not reflect self-insured practices. For example, purchasing insurance through a third-party provider indicates a transfer of risk rather than self-insurance, while paying fixed premiums involves a more traditional insurance arrangement. Not offering health benefits altogether does not relate to the self-insurance concept, as it suggests a complete absence of health benefits.