1. Suppose that health insurance premiums have increased substantially in the past year. You are a member of your firm’s fringe benefits committee and have been charged with reducing the cost of health insurance. Based on the analysis in this chapter, what sort of changes to the benefits package would you recommend? Why?
2. Suppose that Congress was successful in reducing the marginal income tax rates on money wages. What effect would you expect this to have on the nature of health insurance benefits offered by employers? Why?
3. One of your high school buddies has just graduated with her master’s in business administration and accepted a great job in a small consulting firm. However, the firm does not offer health insurance. Over dinner one night, she asks you whether she should buy some health insurance, and if so, what kind. What do you say? Why?
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