Question

Which of the following compensation options helps pay for premiums that cover medical expenses?

A. Cafeteria plan

  B. 401(k)   C. Life insurance   D. Health insurance

Answer 1

the answer is d) Heath insurance.

Answer 2

Answer: Option 'D' is correct.

Explanation:

Health insurance is an insurance that covers the risk of a person incurring medical expenses, for this TPA is hired to verify and collect the medical bills regarding the medical expenses .On the other hand, Life Insurance covers the risk of death of a person and after the sum insured goes to the Nominee.

Whereas, Cafeteria plan is a reimbursement plan done by employees to contribute their gross income in a designated accounts.

Hence, Option 'D' is correct.