Asked by Carol Rodgers on May 22, 2024
Verified
One of the disadvantages of flexible benefit plans is the difficultly to accurately predict the number of employees that might choose each benefit.Such uncertainty may affect the firm's group rates for life and medical insurance,because the costs of such programs are based on the number of employees covered.
Flexible Benefit Plans
Employee benefit programs that allow individuals to choose from a range of benefit options that best suit their personal or family needs.
Group Rates
Special discounted prices offered to a defined group of people, typically for services or admissions.
- Acquire knowledge on the purpose and obstacles of different benefits programs in organizational environments.
Verified Answer
KW
Kenneth WhiteMay 24, 2024
Final Answer :
True
Explanation :
Flexible benefit plans allow employees to choose from a variety of benefits, which makes it difficult to accurately predict how many employees will choose each benefit. This can affect the firm's group rates for insurance, which are based on the number of employees covered. Therefore, the statement is true.
Learning Objectives
- Acquire knowledge on the purpose and obstacles of different benefits programs in organizational environments.
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