Asked by Steven Andekian on Jun 11, 2024
Verified
Because employer payments for health insurance are not subject to income or payroll taxes, government in effect provides a subsidy to health care.
Payroll Taxes
Taxes imposed on employers and employees, calculated as a percentage of the salaries that employers pay their staff, used to fund social security and medicare in many countries.
Health Insurance
A type of insurance coverage that typically pays for medical, surgical, prescription drug, and sometimes dental expenses incurred by the insured.
- Learn about the role health insurance plays and its implications for consuming health care resources.
Verified Answer
VA
Vonani AshleyJun 14, 2024
Final Answer :
True
Explanation :
Employer payments for health insurance are exempt from income and payroll taxes, which effectively reduces the cost of health insurance for employees and employers, acting as a government subsidy to health care.
Learning Objectives
- Learn about the role health insurance plays and its implications for consuming health care resources.
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