The current tax rate paid by employees in a company on their income is 30 percent. Currently, the employer provides workers with a health insurance policy that is worth RM3,000 per year.

a)Suppose that instead of providing the workers with health insurance as a fringe benefit, the employer sold them the policy for a RM3,000 annual premiums. How would this change affect they typical worker, assuming that he or she still wants RM3,000 worth of insurance under the new arrangement?