Which of the following best describes a Self-Insured plan?

A Self-Insured plan is defined by the company’s decision to assume full financial responsibility for the health claims of its employees instead of transferring the risk to an insurance carrier. In this arrangement, the employer directly pays for healthcare expenses incurred by its employees, rather than paying premiums to an insurance company. This allows the company to have more control over its healthcare costs and can provide potentially significant savings for larger organizations that have the financial resources to manage claims themselves.

The other options describe different arrangements. Paying a premium to an insurance carrier characterizes a fully insured plan, where the employer transfers the risk to an insurer. Claims processed by the state government and benefits provided directly from the government typically relate to public healthcare programs or state-sponsored insurance plans, not self-insured arrangements. These distinctions help clarify that a Self-Insured plan centers on the employer's full financial responsibility for claims.