Which of the following is NOT a characteristic of Welfare Plans?

Welfare plans are typically designed to provide various benefits to employees, such as health insurance, dental plans, vision plans, and other types of non-wage compensation. The correct choice identifies a characteristic that does not apply to welfare plans.

Welfare plans do not require all employees to be covered. Coverage often depends on factors such as employee classification, hours worked, and eligibility criteria established by the employer. This flexibility allows employers to customize their benefits offerings based on their workforce needs and financial considerations.

The other options outline characteristics that are typical of welfare plans. For instance, welfare plans can indeed be self-insured or fully insured, allowing organizations to choose how they manage financial risk. They also involve claims payment methods, which are essential for processing the benefits that employees may claim under the plan. Additionally, concerns about claim reserve levels are integral to financial management within these plans, as they must ensure that enough funds are available to cover anticipated future claims.

Ultimately, understanding these characteristics helps clarify how welfare plans function and their flexibility in providing employee benefits.