Massachusetts Health & Accident Insurance Practice Exam

What is a characteristic of a Multiple Employer Trust (MET)?

1. Must be established by a single employer

2. Can only cover large companies

3. Markets group benefits to small employers

4. Is a government-mandated program

The correct answer is: Markets group benefits to small employers

A Multiple Employer Trust (MET) is designed to provide group benefits, such as health insurance, to multiple employers, particularly those who may not have the resources to obtain such benefits independently. One of its central characteristics is that it enables small businesses to come together to pool their resources and share the costs associated with employee benefits. This collaboration allows small employers to access group rates and plans that they might not secure on their own, making benefits more affordable and comprehensive. The nature of a MET is that it is specifically structured to benefit small to medium-sized employers, as opposed to being limited to large companies or being a product of a single employer's initiative. Additionally, it is not a government-mandated program; rather, it is a voluntary arrangement among employers to provide benefits. This collaborative approach is essential for fostering inclusivity among smaller businesses seeking to offer competitive health benefits to their employees.