More Than Half of the U

Multiple Choice

More than half of the U.S. population is covered by employer group health insurance. One of the underlying reasons is that

A) covering a large group under a single contract increases transaction costs.
B) group coverage increases adverse selection.
C) employer payments towards health insurance premiums reduce tax benefits.
D) many of the most expensive patients are heavily subsidized or excluded.
E) it is both the most preferred and the most common method for part-time employees to obtain affordable coverage.