Question: Small companies typically find it more expensive, on a per employee basis, to buy health insurance for their workers, as compared with larger companies. Similarly,

Small companies typically find it more expensive, on a per employee basis, to buy health insurance for their workers, as compared with larger companies. Similarly, it is usually less expensive to obtain health insurance through an employer-provided plan than purchasing it directly from an insurance company—even if your employer requires you to pay the entire premium. Use the ideas from this chapter to explain these observations.

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