What is a primary advantage of employer-based self-insured health plans?

The primary advantage of employer-based self-insured health plans is that they tend to be more reasonably priced due to economies of scale. When an employer opts for a self-insured plan, they essentially take on the responsibility of paying for employees' health claims. By pooling funds and spreading the risk over a large group of employees, employers can often negotiate better rates with healthcare providers and may also avoid paying unnecessary premiums to insurance companies. This approach can lead to significant savings, as administrative costs are lowered, and the employer retains more control over the benefits offered.

In the context of the other choices, offering comprehensive coverage is contingent on the employer's design of the health plan, and it can vary significantly. Lower deductibles are not a guaranteed feature of self-insured plans; they depend on how the employer structures the plan. Immediate approval for all services is unrealistic, as most health plans, regardless of being self-insured, usually require some form of authorization or review process before certain treatments or services are approved, emphasizing the importance of cost management and medical necessity.