Question

How are employers coping with the rising cost of health insurance premiums?

a. They are dropping health benefits in large numbers
b. They are enrolling a greater number of their employees into HMOs
c. They are shifting costs to their employees
d. They are switching to high-deductible health plans in large numbers

Answer 1

Employers are coping with the rising health insurance premiums by shifting costs to employees, enrolling more employees into HMOs, and opting for high-deductible health plans to manage expenses.

Step-by-step explanation:

Employers are coping with the rising costs of health insurance premiums by utilizing various strategies. One common approach is shifting costs to their employees, which can be seen through increased premiums, higher deductibles, and larger co-payments. Additionally, some employers may opt to enroll a greater number of their employees into Health Maintenance Organizations (HMOs) or switch to high-deductible health plans to reduce their financial burden. While some small companies and lower-paying jobs do not offer health insurance at all, the Affordable Care Act (ACA) seeks to mitigate this problem by mandating coverage and preventing denial based on preexisting conditions. Despite these efforts, the costs of health care and insurance remain a significant challenge for both employers and employees alike.