Ch 12 - Ch 12 4 Small companies typically find i t more...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Ch 12 4 Small companies typically find it more expensive on a per employee basis to buy health insurance because they are not given discounted plans issued by the insurance company on a per employee basis. Larger firms are given plans cheaper per employee because they generate more money for the insurance company than would a single smaller firm. It is less expensive to obtain health insurance through an employer than from purchasing it through the insurance company directly because by purchasing insurance it directly from the insurance company, you have to pay for the insurance plan and also the premiums out of pocket. Obtaining insurance through your employer, you pay only for the premiums and not the insurance plan itself. 7 The government provides health insurance directly to some, because underinsurance may provide externalities on others. For example, a person with a serious form of influenza that is uninsured may pass this sickness on to others, creating negative externalities. 12a
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 04/30/2011 for the course ECON 2441 taught by Professor Catalina during the Spring '11 term at UConn.

Page1 / 2

Ch 12 - Ch 12 4 Small companies typically find i t more...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online