Question

In: Operations Management

How do insurance plans offered by employers benefit employees even when employers do not pay any...

How do insurance plans offered by employers benefit employees even when employers do not pay any of the costs?

A. Companies that do not contribute to insurance costs must offer special benefits instead.

B. Employers, though they appear to have no costs, make some indirect legal contribution.

C. Employees are offered insurance plans at lower rates through group programs.

D. The amount paid by employees are tax-free only when employers make no contribution.

Solutions

Expert Solution

The correct option is

C. Employees are offered insurance plans at lower rates through group programs.

In the group programs the insurance cost becomes low. It s cheaper than the individual insurance program. SO by this way insurance plans offered by employers benefit employees even when employers do not pay any of the costs


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