The grouping of two or more small employers to obtain group health insurance at a favorable rate is called a multiple employer

• A. grouping
• B. trust
• C. alliance
• D. corporation

Answer: (B)

Pooling the risk of several small employers into one plan is the defining idea here. When two or more small employers join to obtain group health insurance at better rates, the arrangement is formalized as a multiple employer trust. In a MET, participating employers contribute to a common trust that funds and administers the health benefits for all employees under one plan. That larger, shared risk pool makes it more attractive to insurers, allowing lower premiums and more favorable terms than each small employer could secure individually. The other terms don’t capture that formal pooled structure: grouping is too generic, alliance is vague, and a corporation would imply creating a separate business entity rather than a risk-pooling vehicle.