GBA Practice Questions - Group Benefits Associate Exam

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An employer with 300 employees is considering moving from a fully-insured health plan to a self-insured arrangement. Which of the following is the PRIMARY financial advantage of self-insurance?

The employer is exempt from all federal healthcare regulations The employer retains underwriting savings and avoids state premium taxes and mandated benefits The employer transfers all claims risk to a stop-loss carrier The employer can deny claims for pre-existing conditions

Correct Answer:

The employer retains underwriting savings and avoids state premium taxes and mandated benefits

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