When Firms Allow Employees to "Opt Out" Regarding Health Care

question 43

Multiple Choice

When firms allow employees to "opt out" regarding health care, employees

• A) are offered a cash incentive for electing not to cover their families under the company health plan.
• B) are not eligible to participate if their spouse has health insurance.
• C) are only eligible to participate if they are single.
• D) None of the above.

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Definitions:

Public Aid Programs

Government initiatives designed to provide financial assistance, healthcare, food support, and housing to individuals or families in need.

Means-Tested

Programs or benefits that are only available to individuals or families who fall below a certain income threshold.

Monetary Benefit

Financial gains obtained from an action, investment, or decision, quantifiable in terms of money.

Perverse Incentives

Incentives that have unintended and undesirable results, contrary to the interests of the incentive makers.