Which of the Following Actions Help Organizations Reduce the Cost

question 57

Multiple Choice

Which of the following actions help organizations reduce the cost of health care benefits offered to employees?

• A) increasing the amount employers pay for deductibles and coinsurance
• B) selecting traditional health insurance over HMOs and PPOs as a preferred option
• C) expanding the coverage for different types of claims
• D) paying some or all of the difference in cost between an HMO or PPO plan
• E) shifting from traditional health insurance plans to PPOs and CDHPs

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Definitions:

Profits

The financial gain obtained when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes involved in sustaining the activity.

Firms

Business organizations involved in the production and sale of goods and services.

Payroll Tax

Taxes imposed on employers and employees, calculated as a percentage of the salaries that employers pay to their staff.

Regressive

A term typically used to describe tax systems that take a smaller percentage of income as income increases, disproportionately affecting lower-income earners.