In a non-contributory plan, who covers the cost of insurance coverage?

In a non-contributory plan, the organizing entity, typically the employer, assumes full responsibility for all costs associated with providing insurance coverage to employees. This means that employees do not have to pay any premiums or contribute financially to their coverage. The employer decides to offer this benefit as part of the overall compensation package to attract and retain talent without requiring any contribution from the employees.

This type of plan is advantageous for employees since it simplifies the enrollment process and provides peace of mind without any immediate financial obligation. Furthermore, the employer may see tax benefits or incentives associated with providing such coverage.

In contrast, the other options indicate scenarios where employees would bear some financial responsibility or where external entities would cover the costs, which does not accurately reflect the nature of a non-contributory plan.