A problem withproviding flexibility in benefit choice is that_____.
A) it does not cover higher-risk employees
B) it increases the risk of adverse selection by employees
C) it is typically discriminatory in nature
D) it increases attrition rates

Question

Quizplus · Accepted Answer

Providing flexibility in benefit choice can increase the risk of adverse selection by employees. Adverse selection occurs when employees who are at higher risk are more likely to choose certain benefits, which can ultimately result in higher costs for the employer. This can be a problem for employers trying to balance the cost of providing benefits with the overall health and well-being of their workforce.

A Problem Withproviding Flexibility in Benefit Choice Is That_____