Which type of funding arrangement is characterized by the employer self-insuring for expected claims up to a certain amount?

The type of funding arrangement characterized by the employer self-insuring for expected claims up to a certain amount is known as a self-funding arrangement. In this setup, the employer assumes the financial risk of providing health benefits to its employees. Instead of paying a fixed premium to an insurance company, the employer sets aside funds to pay for claims directly, up to a certain threshold.

Self-funding allows employers to potentially save on premium costs and can provide more flexibility in managing their benefits, as they have more control over claims and expenses. Employers often choose this approach if they have a large enough employee base to predict claims accurately and manage the risks associated with self-insurance.

In contrast, other arrangements like minimum premium, shared funding, and retrospective premium arrangements involve varying degrees of risk-sharing with insurers rather than complete self-insurance by the employer. Therefore, the self-funding arrangement specifically reflects the concept of the employer taking on the responsibility for claims up to a set limit.