What is true about the cost of employer-offered group coverage?

When considering employer-offered group coverage, one important aspect is that the cost is deductible as a business expense by the employer. This is significant because it allows employers to manage their overhead costs while providing valuable health benefits to their employees. By deducting the cost of providing health insurance from their taxable income, employers can reduce their overall tax liability, making it financially beneficial to offer such coverage.

Additionally, this tax deductibility is a major incentive for employers to maintain group health plans, which in turn helps attract and retain talent by offering competitive benefits. It's a critical component of how businesses view employee benefits in relation to their financial planning and decision-making.

The other options do not align with established practices concerning group coverage costs. Although employee contributions can vary and some employers may choose different cost-sharing structures, it is not a requirement that costs must be equally shared or that they cannot be fully borne by the employer or employees entirely. Understanding this deductibility aspect can clarify why many employers opt to provide group coverage as part of their benefits package.