Question

Jason is insured under his employer's group health insurance. He splits the cost of the premiums with his employer. This is an example of:

A) Contributory coverage
B) Non-contributory coverage
C) Voluntary coverage
D) Individual coverage

Answer 1

Jason's situation, where he and his employer both pay for the health insurance premiums, is known as Contributory coverage. This type of plan is common in employment-based insurance, involving shared costs like premiums, deductibles, and copayments.

Step-by-step explanation:

Jason is insured under his employer's group health insurance and contributes to the cost of the premiums with his employer. This is an example of Contributory coverage, where both the employee and employer share in the cost of the insurance premiums. This type of coverage is common in employment-based insurance and often includes cost-sharing mechanisms like deductibles, copayments, and coinsurance, designed to mitigate moral hazard by making insured parties responsible for part of their healthcare costs.