What characterizes a Multiple-Employer Trust (MET) for insurance purposes?

A Multiple-Employer Trust (MET) is characterized by two or more employers coming together to jointly purchase a benefits plan. This collaborative approach allows smaller employers who may not have the resources to negotiate favorable insurance rates on their own to pool their resources and achieve better coverage and costs through collective bargaining.

By participating in a MET, employers can offer their employees benefits similar to those provided by larger companies, which can improve employee satisfaction and retention. This arrangement is particularly beneficial in situations where individual employers might face higher premiums or limited options due to their size or the nature of their workforce.

The other potential answers do not accurately reflect the nature of a MET. A single employer providing insurance for all employees describes a traditional employer-sponsored health plan. Conversely, an association of unrelated businesses may indicate a different type of cooperative arrangement that is not specific to a trust structured for benefit purchases. Lastly, a single employer offering multiple plans does not involve the collaboration aspect essential to METs, which is about pooling resources across multiple employers.