Final answer:
State regulation of workers' compensation ensures benefits for on-the-job injuries, while employer-sponsored disability and life insurance plans are often part of employee benefits packages. Employees may be ineligible for benefits due to self-inflicted injuries or illegal activities. Providing these benefits serves society by providing a safety net and preventing poverty, balanced against economic costs and potential moral hazard or adverse selection.
Step-by-step explanation:
Objectives of Regulation in Workers' Compensation and Employer-Sponsored Benefits
The main objectives of state regulation of workers' compensation programs are to provide financial and medical benefits to employees who are injured on the job and to ensure employers carry the cost of injuries that occur during employment through mandatory insurance programs. In contrast, employer-sponsored disability and life insurance plans, while also providing financial protection to employees in cases of injury, illness, or death, are often designed to serve as an employee benefit to attract and retain talent.
Circumstances for Ineligibility of Benefits
Employees should be ineligible for public or private disability and life benefits under certain circumstances, such as when injuries are self-inflicted, occur while the employee is committing a serious crime, or when the employee's behavior, such as working under the influence of drugs or alcohol, violates company policy and contributes to the injury. This ineligibility is justified because such behaviors create preventable risks and undermine the principles of shared responsibility inherent in insurance systems.
Societal Interests and Benefit Programs
The expenses associated with providing public and private programs are often seen as serving the best interests of society by providing a safety net that helps maintain social stability, prevent poverty, and allow injured or disabled workers to recover or adapt without falling into severe financial hardship. However, the challenge lies in balancing these social benefits with the economic costs and ensuring the insurance programs do not suffer from issues of moral hazard or adverse selection.