What are two reasons why employees would prefer for their employer to pay for their health insurance rather than receiving increased wages and paying for their own health insurance?
What will be an ideal response?
1. The wage an employer pays employees is taxable income to the employees but the money an employer spends to buy health insurance for employees is not taxable.
2. Insurance companies are typically willing to charge lower premiums for group insurance, particularly to large employers, because risk pooling is improved and adverse selection and moral hazard problems are lower when compared with individual policies.
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The law of diminishing marginal utility guarantees that demand curves will have positive slopes
a. True b. False Indicate whether the statement is true or false
If the demand for loanable funds shifts to the right, then initially there is a
a. surplus so the interest rate will fall. b. surplus so the interest rate will rise. c. shortage so the interest rate will fall. d. shortage so the interest rate will rise.
A rise in interest rates will cause
A. Investment spending to remain constant. B. A decline in investment spending. C. A rise in investment spending. D. Investment spending to be eliminated from the economy.
Which of the following is NOT associated with debt restructuring?
A. Debt rescheduling B. Collective action clauses C. Taxes on international borrowing D. Debt reduction