Blue Company Has a Plan Whereby It Pays for Health

Blue Company has a plan whereby it pays for health care insurance for all employees after they retire. Red Company has a defined benefit pension plan for its employees. With respect to these plans, which of the following statements is not true?

A) Red Company's obligation tends to increase in a more steady pattern than that of Blue Company.
B) Red Company's accounting for its obligation is similar to that of Blue Company.
C) Red Company's obligation is less difficult to estimate than that of Blue Company.
D) Red Company is less likely to fund its obligation than is Blue Company.