Question

1. What is the employer-paid health insurance system? Why is it considered to be subsidized by the government?

Answer 1

Employer paid health insurance is called so because the employer pays health insurance for their employees , usually part of it is inscribed in the salary scale. This gives the employees an incentive for the job under the employer. The amount can be claimed during medical emergencies by the employees. This type of benefit comes under benefit package for the employees.

Such packages are considered to be subsidised by the govt because the income used as an insurance money is not taxed . Since the govt is not claiming any taxed money over the amount compensated as insurance for health , the money can be called subsidised or the govt forgo the taxed amount, creating a deficit for that amount.