Homework Clinic
Social Science Clinic => Economics => Microeconomics => Topic started by: vinney12 on Jul 21, 2019
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Many large companies offer employees time off during the workday to attend seminars on how to improve their health. Some even give bonuses to people who show that they are adopting healthy lifestyles by, for example, weighing in before and after the holidays to show that they are following a sensible diet. Other than showing that they "care" about their employees and trying to minimize number of days missed from work, why would a company adopt a program like this?
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If the company is involved in an insurance program that prices its employees' medical insurance based on the "experience rating" system, the employer's health insurance costs go down if its employees go to the doctor less frequently. A program that results in healthier employees will thus save the company money in insurance premiums.