Who pays the premium in a noncontributory plan?

Study for the Ohio Health Insurance Exam. Study with flashcards and multiple choice questions, each question has hints and explanations. Get ready for your exam!

In a noncontributory health insurance plan, the employer assumes the full responsibility for paying the entire premium. This means that eligible employees do not contribute financially towards the cost of their insurance coverage. The employer finances the premium as part of their obligation to provide health benefits to their employees, which is an essential feature of noncontributory plans. This arrangement can be appealing to employers as it simplifies the benefits administration process and can help in attracting and retaining talent, since employees enjoy the benefit of receiving coverage without any payroll deductions.

The structure of a noncontributory plan contrasts with contributory plans, where employees are required to share the cost of the premiums. In the case of the other options, they involve some level of employee contribution, which fundamentally differs from the premise of a noncontributory plan.

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