Which of the following best describes "cost to employer"?

The phrase "cost to employer" is best described as the expense related to providing health benefits, which encompasses not only the premiums paid for health insurance but also the claims costs incurred when employees use those health benefits. This definition captures the complete financial responsibility that an employer faces in maintaining a health benefits program for their employees.

Employers typically cover a substantial portion of these costs, making it critical to understand how health benefits impact overall expenses. This definition is particularly relevant in the context of healthcare finance and employer-sponsored insurance models, where managing these costs can directly affect a company's bottom line and influence decisions regarding employee benefits.

In contrast, the other choices focus on different aspects of healthcare costs that do not directly represent the financial burden on the employer. For example, the total expenses incurred by employees for medical care address out-of-pocket expenses, which are not borne by the employer. Out-of-pocket payment responsibilities also refer to what employees pay rather than what the employer incurs. Lastly, the average salary of an employee in a healthcare position pertains to payroll costs and does not specifically relate to the costs associated with health benefits.