Question

7.
Why would it be more cost effective to obtain health insurance from your employer instead of on your own?

A.
Employers will usually pay 2 to 4% of an employees health insurance premium, something you won't get otherwise.

B.
Employers often get a discount on the premiums they offer, which means more of a savings for you.

C.
Employers often will pay for medical services that your health insurance plan does not cover.

D.
Employers will often pay 100% of their employees health insurance premium.

Answer 1

B

Employers can contract for group coverage and negotiate lower premiums (and often pay part of the premium), so employee-costs are typically lower than buying an individual policy.