Define "self-insurance" in terms of health care.

Self-insurance in the context of health care refers to a situation where an individual or an employer takes on the financial responsibility for their own health care costs instead of transferring that risk to an insurance provider through traditional insurance plans. This means that rather than paying premiums to an insurance company, the individual or employer allocates their own resources—such as funds or a dedicated health care reserve—to cover medical expenses as they arise.

This approach can provide flexibility and potentially lower costs, as it avoids the premiums associated with standard insurance plans. Additionally, self-insurance may allow for more control over the funds and how they are used for health care services, as the individual or employer can decide how to manage and direct their health expenditures.