Question
In: Economics
In the United States, employee benefits in the form of health insurance are not taxed. How...
In the United States, employee benefits in the form of health insurance are not taxed. How does this affect the price of health insurance compared to goods that are purchased after income is taxed? How does the amount of health insurance consumed compare to the amount that would be consumed if the benefit was taxed
Solutions
Expert Solution
If an employee's health insurance is not taxed, then the cost of health insurance will be less than the product purchased by the employee, which is also taxed! so it is beneficial for employee because in US health insurance prices is very high and due to highr price not everyone can buy them.
If the employee is also taxed for purchasing health insurance, then the employee may not buy health insurance and use those money for any purchase to save it.
Rahul Sunny answered 2 years agoRelated Solutions
Among the benefits offered by corporations, at least in the United States, is health insurance. One...
Among the benefits offered by corporations, at least in the
United States, is health insurance. One explanation for why
corporations offer such insurance is that this benefit is tax
favored: Companies can compensate employees with health-insurance
benefits that are treated as nontaxable income. Also, health care
providers and insurers (such as Blue Shield) have historically
offered better rates to employers for their employees than to
individuals who ask for the same coverage. Why is this?
A major factor contributing to the growth in employee-based health insurance in the United States has...
A major factor contributing to the growth in employee-based
health insurance in the United States has been:
1.
greater than average economic growth leading to increased demand
for labor
2.
the tax-free treatment of health insurance as an employee
benefit
3.
legislation requiring all firms to provide health insurance to
all full-time workers
4.
the long-standing tradition in the United States of providing a
generous package of benefits to all workers
Provide a brief description of the history of health insurance in the United States.
Provide a brief description of the history of health insurance
in the United States.
Why is health insurance linked to employment (e.g. group insurance) in the United States? Explain.
Why is health insurance linked to employment (e.g. group
insurance) in the United States? Explain.
Under ERISA, states may not regulate health insurance if thatinsurance is provided as an “employee...
Under ERISA, states may not regulate health insurance if that
insurance is provided as an “employee benefit.” True or FalseGross negligence involves an intentional or wanton omission of
care. True or FalseMedicare is a form of social insurance that benefits persons 65
and older and certain other persons with long term disabilities.
True or FalseWhen a Hospital is
sued for the negligence of a nurse the hospital may be held liable
under a theory of:Respondeat
SuperiorOstensible AgencyComparative
NegligenceContributory
NegligenceNone of...
An increase in the number of people in the United States with health insurance would likely...
An increase in the number of people in the United States with
health insurance would likely cause: A. the cost of health care
services to increase as the incentive for health care providers to
minimize costs becomes less important. B. the cost of health care
services to decrease as the incentive for health care providers to
minimize costs becomes less important. C. the cost of health care
services to decrease as the incentive for health care providers to
minimize costs...
15. Compared to offering no unemployment benefits, the unemployment insurance system of the United States probably...
15. Compared to offering no unemployment benefits, the
unemployment insurance system of the United States probably
a. leads to longer spells of unemployment.
b. decreases the unemployment rate.
c. leads to lower post-unemployment wages.
d. provides for a lower standard of living while unemployed.
How would you suggest the United States reduce the cost of medical health insurance? Why do...
How would you suggest the United States reduce the cost
of medical health insurance?
Why do you think the United States has not adopted the
approach to health care as Canada, France, and much of the
developed world?
The main sources of health insurance in the United States include all of the following except...
The main sources of health insurance in the United States
include all of the following except
A.
for-profit firms such as Aetna and John Hancock.
B.
household co-operatives, or co-ops.
C.
the government, through programs such as Medicare, Medicaid,
and the Veterans Administration.
D.
non-profit firms such as the Blue Cross and Blue Shield
organizations.
Explain the need for health insurance in the United States from an economic perspective and address...
Explain the need for health insurance in the United States from
an economic perspective and address the benefits and limitations of
privatized and public provision of health insurance. In doing so
explain how each approach deals with the concepts of risk
mitigation, adverse selection, and moral hazard
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