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The purest form of a self-funded benefit plan is one in which the employer pays...

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

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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