Question

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

Answer 1

• Option 2 is the answer.
• The tax-free treatment of health insurance as an employee benefit.
• A major factor contributing to the growth in employee-based health insurance in the United States has been the tax-free treatment on health insurance as an employee benefit. It is a great advantage for employees to get a tax-free treatment in the health insurance sector and the U.S government is providing it for the employees. This will encourage the employees to participate in the employee-based insurance programs.