There are many reason why employers offer insurance benefits to their employees and many reason they don’t. Let’s look at some of the pros, for providing coverage to your employees. First, it makes the organization more attract for employees, it also helps to retain the most qualified employees possible for the organization. Secondly, employees often accept health benefits instead of a higher salary, resulting in the organization saving money. Offering health insurance has been known to decrease absenteeism and improve employee morale and health. It also gives the organization a competitive edge in the market. Finally, offering insurance benefits to employees allowed the owner of the business to pay less on he or she own personal benefits because they are …show more content…
Significant cost is definitely a disadvantage for organization, especially for small organization. The less employees you have, the lesser buying power the organization has then an organization that has many employees. The next con for offering health insurance to employees is that each employee will need diffident needs this means that the organization will need to make sure it picks and chooses a variety of plans so that all employees’ needs are mat. Offering benefits can create concerns about legal compliance, which turns out to cost the organization legal fees. Finally, with any legal compliances of possible mistakes can open the door of lawsuits or fines.
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There are many types of coverage available for the organization. We can choose from, Health Maintenance Organization (HMO), Preferred Provider Organization (PPO), Point-of-Service Plan (POS) and Indemnity Plan. The plan that I feel we should choose from, is Preferred Provider Organization (PPO) this way every employees and the owner can stay with their own health care provider. This plan provides some flexibility then HMO (Buchbinder S. B., 2012).
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Commonly associated with pay for employees, benefits is the second biggest obstacle for management. Like Volkswagen starts employees off at the basic pay the unions would achieve, a similar benefits program should be implemented (Greenhouse, 2014). The passing of the Affordable Health Care Act has made it possible for many citizens to receive coverage but it is basic at best. GMFC should create a plan based off of the Health Care Act and unionized plans and allow for extras to be added on. This allows for employees to pick the benefits package that works best for them.
Managed Care Organizations (MCO’s) formed in the 1970’s. There are two organizations that fall under the MCO umbrella commonly known as HMO’s and PPO’s. With HMO’s, the primary care physician acts as a chief liaison, thus organizing services and treatment for the patient. With the organizational structure of HMO plans, patients must see the PCP to access specialized services they may need; however, PPO plans allow additional flexibility for the patient by allowing the patient to choose providers within the network relieving the primary care physician of acting as a gateway keeper.
You want information about health insurance and you would like to have it in a easy to understand format. If this is the case, this article will be perfect for you. We will lay out some of the most important tips and guidelines in a way that you can quickly digest.
Health insurance comes as second nature to many of us. We grab that blue and white card and put it in our wallet and forget about it until we are sick or injured. When this happens, there it is, cushioning our fall like the extra padding it provided to cushion our wallets. This is not the case with everyone, however. Many Americans have no cushion to fall back on, no blue and white card to show the emergency room when they have an unexpected health concern. No HMO with a convenient co-pay amount when their son or daughter develops an ear infection.
In a time of economic hardship, Americans have become more and more conscious of how they spend their money. For obvious reasons, nearly all consumers would agree that overpaying for a product is bad, what they don’t realize is that over half of Americans already do. The american health care system has a multitude of flaws with a bunch of causes that raises cost, but at the root of it all is what sets america’s system apart, private insurance. Because of private health insurance,the cost of health care in the United States has risen exponentially.
The steady rise of healthcare costs and the ever increasing cost of health insurance premiums are making it harder and harder for employers to pay healthcare premiums for their employees. In the past, it was almost a given that employers picked up the tab for health insurance coverage. The health coverage was usually exceptional with little or no money paid out of pocket by the individual for the insurance premiums. Those appear to be the “good old days”, with fewer and fewer employers shelling out money for health insurance premiums and demanding a larger percentage to be paid by the employee. Other employers are simply unable to financially provide healthcare coverage for their employees and have stopped all together.
Health Insurance being mandatory let us solve lot of problems that we are facing nowadays like free riders, more number of uninsured in the country, etc.
3. Preferred Provider Organization (PPO) - It is a most popular plan. It 's similar to an HMO, but you cover medical care after it 's received as opposed to paying a monthly monetary fee. You also have the opportunity of seeing out-of-network physicians. Visits within the network require a small fee, while out-of-network visits may need a deductible payment in addition to a co-payment.
There are many reasons for the employees to get involved in a wellness program. Whether they like it or not overall wellness will affect their everyday life, at home as well as at work. The fact of the matter is that people that are in good health are usually more coherent and are able to enjoy more out of life. With more incentive going towards corporations paying subsidies to encourage employee participation there is increasing demand by employees to have a wellness program implemented.
Most people rely on their employers to provide them with health insurance, but with many health care is not available through the employers. Many small businesses can simply not afford the high cost of health care, or it may be available, but the employee needs to pay the entire premiums. A lot of employers are utilizing part time employees, the part time employees are usually not qualified for benefits, like health insurance. This is very unfortunate for these part timer’s not only because they will not get benefits such as health insurance, but also they probably have a slim chance of going full time because of the health insurance dilemma. Business owner’s need to assess what is good for them financially, and having plenty of part time employees who do not require insurance is probably the most cost effective method to keep the Business up and running.
Managed care dominates health care in the United States. It is any health care delivery system that combines the functions of health insurance and the actual delivery of care, where costs and utilization of services are controlled by methods such as gatekeeping, case management, and utilization review. Different types of managed care plans came into development by three major factors. These factors include choice of providers, different ways of arranging the delivery of services, and payment and risk sharing. Types of managed care organizations include Health Maintenance Organizations (HMOs) which consist of five common models that differ according to how the HMO is related to the participating physicians, Preferred Provider Organizations (PPOs), Exclusive Provider Organizations (EPO), and Point of Service Plans (POS). `The information management system in a managed care organization is determined by the structure of the organization' (Peden,1998, p.90). The goal of a managed care system is to provide subscribers and dependants with needed health care services at the lowest possible cost. Certain managed care plans also focus on prevention by trying to keep members healthy.
One of the benefits of universal health care is that it can offer continuity of insurance coverage for citizens . Without such a system, it is not common for citizens lose their insurance coverage if they lose their jobs or quit. With the system of universal health care, insurance coverage will always be there regardless of whether they work. the individual can continue this type of coverage and eliminate the need for insurance companies concern about pre - existing conditions or other similar restrictions .
To begin with, In today's working society it is extremely important to have medical coverage, and while nowadays most consumers receive their coverage through their employers, there is still a percentage of our population that
Have you ever went without health insurance between jobs, or while working part time or because you just couldn?t afford it? No having health insurance is a big risk in a time where medical costs are sky high, Prescription drug prices are outrageous and when your paying your family doctor $50 for a office visit. Fifty dollars represents a full 8 hours of work for many Americans.
Benefits tend to give employees a sense of security. Health insurance is one of the major benefits that encourages employees to stay with an organization even in difficult situations. With health insurance companies attract and retain qualified employees. According to Optima Health (“Starting in 2015, employers with 50 or more full-time equivalent employees are required to offer affordable, minimum-value group health insurance. If they don’t, they may be assessed government penalties.” n.d.). There are other helpful health insurance benefits such as deducting 100 percent of their employees ' health insurance cost as a business expense. If the organization is incorporated the owner’s insurance cost is also deductible. But if it’s a small business with less than 25 employees, they may be able to receive a tax credit if they’re with a small group insurance. If there’s 50 or more employees the business is eligible for a larger group health insurance which offers lower rates. Also with employee health insurance employees have a bigger chance of being able to pay medical expenses. In addition to valuable benefit retirement saving plans are essential part of your future financial security. All employees are encouraged to save for retirement. Tax advantages are also accessible to business owners that offer retirement plans. All