Which of the Following Is True Regarding Employer-Provided Health Insurance

question 53

Multiple Choice

Which of the following is true regarding employer-provided health insurance?

• A) About two-thirds of nonelderly adults have health insurance through group plans offered by their employers.
• B) Employee compensation in the form of health insurance is not subject to taxation, which makes it particularly attractive for people to purchase it through their employers rather than privately, and also to demand policies with small co-payment rates and a low deductible.
• C) The linking of health insurance to employment reduces employee mobility and creates a situation where employees lose their health insurance when they lose their job or change jobs.
• D) All of the above are true.

---

Definitions:

Itemized Deductions

Eligible expenses that individuals can claim on their tax returns to reduce their taxable income, such as mortgage interest, medical expenses, and charitable donations.

High-Income Individuals

Persons with income levels significantly above the average, often subject to higher tax rates and financial strategies.

Schedule A

A form used in the U.S. to itemize deductions for taxes, including medical expenses, state and local taxes, and charitable contributions.

Personal Property Taxes

Taxes levied by local governments on the value of personal property such as vehicles, boats, and equipment.