Tendency for plans that have relatively high premiums

Reference no: EM13685057

Presume the U.S. government’s tax policies on employer health coverage were to be changed. In particular, presume health premiums paid through the employer were no longer tax exempt. In its place, the government provides a 25 percent subsidy for all employer health expenditures. That is, the government gives a tax credit to the employer worth 25 percent of expenditures. How might this new policy impact who gets insurance? Will there still be a tendency for plans that have relatively high premiums and low OOP costs? In a paragraph or two, concisely answer these questions and clearly describe your reasoning

Reference no: EM13685057

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