In Consumer-Driven Health Care Plans,the First Tier Is a Pretax

question 22

True/False

In consumer-driven health care plans,the first tier is a pretax account that allows employees to pay for services using pretax dollars.(Consumer-Driven Health Care)

---

Definitions:

Rent-Seeking Activities

Practices of gaining economic benefits without contributing to productivity, typically through manipulation of the political environment.

Monopoly Power

The exclusive control by one company over an entire industry or market, allowing it to dictate terms and prices without competition.

Welfare Loss

This refers to the decrease in economic efficiency that occurs when the equilibrium for a good or service is not achieved or is distorted by external intervention, leading to a loss of social surplus.

Consumer Surplus

The discrepancy between the amount consumers are ready to pay for a good or service and the price they end up paying.