If Insurance Premiums Are Based on an Experience Rating

Multiple Choice

If insurance premiums are based on an experience rating,

A) every firm in a given area pays the same price for medical insurance.
B) insurance premiums are based on the past medical bills of a firm's employees.
C) firms have no incentive to try to lower the health care costs of their employees.
D) firms will not be concerned with the health problems of job applicants.