Higher administrative costs and adverse selection discourage employers from implementing cafeteria plans.

Name: Higher administrative costs and adverse selection discourage employers from implementing cafeteria plans.
Brand: Quizplus
Rating: 4.9 (39 reviews)

Question

Quizplus · Accepted Answer

Cafeteria plans can lead to higher administrative costs due to the complexity of managing multiple benefit options, and adverse selection can occur if employees with higher healthcare needs disproportionately choose more comprehensive benefits, increasing costs for employers.

Higher Administrative Costs and Adverse Selection Discourage Employers from Implementing