Asked by Adrian Rogalski on Jun 26, 2024
Verified
An advantage for an individual of having employment-based insurance is that it:
A) increases moral hazard.
B) increases the likelihood of adverse selection.
C) increases government tax revenues.
D) receives favorable tax treatment.
Employment-Based Insurance
Health insurance provided by an employer as part of a benefits package to employees, often covering a portion of healthcare costs.
Favorable Tax Treatment
Tax policies that are advantageous to businesses or individuals, often involving lower rates or specific deductions.
- Gain insight into the various health insurance systems and policies worldwide, such as single-payer and employment-based schemas.
Verified Answer
CW
Cheance WhitonJun 27, 2024
Final Answer :
D
Explanation :
Employment-based health insurance is provided through employer-sponsored group plans, and the premiums paid by the employer are tax-deductible. The employee's share of the premium is generally excluded from taxable income, which provides favorable tax treatment. This reduces the cost of insurance for employees and makes it an attractive benefit for employers to offer.
Learning Objectives
- Gain insight into the various health insurance systems and policies worldwide, such as single-payer and employment-based schemas.
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