Employer-Provided Health Insurance
Response to the following problem:
Monix Enterprises provides its employees with health insurance coverage. During the year, it pays $7,500 of insurance premiums for each of its employees. Randy is a highly paid employee of Monix. Jon is not one of Monix's highly paid employees
a. Discuss the consequences to Randy and Jon if the plan favors highly paid employees.
b. Discuss the consequences to Randy and Jon if the plan does not favor key or highly paid employees.