Pros And Cons Of Insurance Advantages To Employees

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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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