In Cafeteria-Style Plans, Adverse Selection Can Be Controlled By

question 84

Multiple Choice

In cafeteria-style plans, adverse selection can be controlled by:

• A)allowing employees to choose benefits based on their personal needs.
• B)removing the limitations on coverage amounts.
• C)pricing benefits subject to adverse selection lower.
• D)increasing the choices that cater to individual needs.
• E)using a limited set of packaged options.

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Definitions:

Markup Percent

The percentage increase on the cost price of goods to determine the selling price, representing the profit margin.

Cost

The amount of money required to purchase, produce, or maintain something, often considered in business and financial contexts.

Markup Percent

The percentage increase on the cost price of goods to arrive at the selling price.

Selling Price

The amount of money for which a product or service is sold to customers.