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The Good Beer Brewing Company currently purchases health insurance for its 10,000 employees. The company is considering a flexible plan where emloyees can have either $2,000 in cash or insurance coverage (the insurance costs $2000). The company figures it will expend the same amount of money either way. However, employees will be better off because they can choose the option that is most preferred. Do you see any potential problems with this idea?

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The expert examines the aim of the funds in the case.

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Yes i can see potential problems. First of all the aim of the funds used for its 10,000 employees is to cover their health expenses. The company can purchase the insurance for them or give them as ...

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