The Good Beer Brewing Company currently purchases health insurance for its 10,000 employees. The company is considering

Question:

The Good Beer Brewing Company currently purchases health insurance for its 10,000 employees. The company is considering a flexible plan where employees can have either $2,000 in cash or insurance coverage (the insurance costs $2,000). The company figures it will expend the same amount of money either way. However, employees will be made better off because they can choose the option that is most preferred. Do you see any potential problems with this idea? Explain.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Managerial Economics and Organizational Architecture

ISBN: 978-0073375823

5th edition

Authors: James Brickley, Jerold Zimmerman, Clifford W. Smith Jr

Question Posted: