| SciFiBoy said: both |
So let me build this scenario, and ask you what you would do.
Lets say you employ 100 people, and each cost $4,000 a year to insure, and you pay half. So they pay $2,000, and you pay $2,000. Every employee is overweight and smokes.
You realize, that if each person was healthier, the cost would really be $2000 each. So, you tell your employees that if they get into a healthy weight, don't smoke, the cost will go down to half.
Let's say half your employees take you up on that offer, and start working out every day, and go the the hard work of giving up smoking, and in the end, for those 50 employees, the cost drops in half.
What do you then do?
Do you charge the people who didn't do anything the same ($2000 them/$2000 you), and then the people who now cost half to cover less ($1000 them/$1000 you)?
or
Do you average it out to $3,000 each, and them charge all $1,500 and pay $1,500?
