If an employee pays part of the premium for a group health plan, what type of plan are they covered under?

Prepare for the North Carolina Accident and Health Exam. Utilize flashcards and multiple choice questions featuring hints and explanations. Ace your exam effortlessly!

When an employee pays part of the premium for a group health plan, they are covered under a contributory plan. In this type of arrangement, both the employer and the employees share the cost of premiums. The employee's contribution signifies their involvement and commitment to the group coverage, which often leads to more comprehensive benefits being available.

In contrast, a noncontributory plan is one where the employer covers the full premium, meaning employees do not contribute anything. Fully insured plans typically refer to a scenario where an employer purchases coverage from an insurance company, and a self-insured plan indicates that the employer retains the risk and pays for health care costs directly rather than purchasing a traditional insurance policy. The key element that defines a contributory plan is the employee's financial contribution, which aligns with the question's context.

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