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Question
Scenario 9.1Chocolatta University, an institute of higher learning that educates future confectionary chefs, offers a very attractive benefits package. Costs associated with benefits are about double those of rival institutions, Jellibelli Tech and Truffle State. However, Chocolatta U. administrators feel that the extensive benefits attract the most talented faculty and staff in the world. Due to recent societal trends in fitness and health, Chocolatta U. has experienced a downturn in its funding support from global confectionary corporations seeing lower profits. The university's budget has therefore been reduced. Joy Almond, human resource benefits manager, has been asked to find ways to reduce expenditures on benefits, so that important university programs do not suffer.
Refer to Scenario 9.1. Ms. Almond is considering one cost-cutting option, in which employees are asked to make a small co-payment for each doctor's or dentist's visit. What is this called?
a. Cafeteria-style benefits
b. Coordination of benefits
c. Defined benefits
d. Sharing costs
e. Health maintenance organization
Answer
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