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

Info icon This 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.
Image of page 1

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

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

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern