The future of health care as an employee benefit essay

Despite the short shrift afforded the business case in mainstream economics, it seems worthwhile to reassess it. Employees also have a set rate for prescriptions included in the plan as well, prescription prices can range based on the type of drug and decreasing in price if a generic version is offered.

But by the end of the decade, the number of uninsured had again increased, as the economy softened and the number of people with employer-sponsored coverage decreased. Moreover, health insurers may exclude coverage for certain conditions, exclude coverage for some services, or deny coverage altogether for people with preexisting health conditions or who are perceived to be at high risk Pollitz, Sorian, and Thomas FMLA is something that is doctor approved and an employee obtains a certain amount of hours to use per year.

In other instances, we found that employers, facing significant health plan premium increases, reduced other benefits in preference to reducing health benefits, because they believed that health benefits were more highly valued by employees.

Managing Costs, Managing Benefits: Employer Decisions in Local Health Care Markets

In a discussion of the impact of a government mandate, for example, economist Mark Pauly ruled out any real benefits to the employer. They also began replacing HMO options with point-of-service POS variants, and introduced preferred provider organization PPO alternatives to more restrictive forms of managed care.

Employers believed that, absent any real ability to shift patients among providers by switching health plans, and given a diminishing number of plan options, the potential gains from collaborative efforts would not outweigh the costs of participation.

Just as workers still need financial protection today—and undoubtedly more so because of the high cost of medical care—employers also still benefit from offering health benefits to workers. Study Design This is an observational study with data collection over a six-year period.

During our second round of site visits, in —, many respondents predicted that employers would begin to limit benefits, and possibly move back to more restrictive forms of managed care, when projected premium increases took hold.

Numerous reasons motivate many organizations to develop and plan their employee benefit plans. Local health care systems, and safety-net hospitals in particular, experience financial strain when providing care for a large uninsured population.

Why do employers offer health insurance to workers? Additionally, we found that the internal structure and policies of large, national firms played an important part in determining what options were available for local health benefits managers.

This ensures that the company operates within the legal frameworks by meeting specified legal obligations when developing an employee benefit plans.

A second important finding of our study is cautionary in nature. These perspectives are not mutually exclusive, but they do emphasize different factors as being of primary importance in employer decision making.

Even though these companies were headquartered locally, their health benefit strategies were not particularly sensitive to the characteristics of local health care systems. Positive incentives to engage in or maintain healthy behaviors might include discounted health club memberships and free smoking cessation programs.

These surveys provide useful information about the current state of health benefits and recent changes in coverage or out-of-pocket costs. Employees who would have a difficult time finding a better-paying job if they left or were fired from their current job work harder than do workers who could easily move to another job that paid equally well.

Developing and Planning Employee Benefits

Differing Perspectives The literature provides at least three distinct perspectives on employers and their health benefits decisions. They receive no tax benefit unless their spending on medical care exceeds 7. A key flaw in the standard theory is that it ignores the benefits accruing to employers from offering health benefits.

Employee Benefits

And, where coalitions were present, the results of their efforts were frequently disappointing. An Analysis of Compensating Differentials.Forecasting the future of health care and health policy is an imperfect science. Among the predictions made in the mids were that there would be a physician surplus, a growing number of elderly people, an increase in the number of people in managed care plans, restructured health benefits, new.

The cost of employee health-care benefits has increased rapidly over recent years, contribut- ing to the budgetary stress that governments are already facing as a result of declining or stagnant revenues and escalating costs in other areas.

Depending on the company, these benefits may include health insurance (required to be offered by larger companies), dental insurance, vision care, life insurance, paid vacation leave, personal leave, sick leave, child care, fitness, a retirement plan, and other optional benefits offered to employees and their families.

In trying to envision the future of employer-sponsored health care, Thomas Parry, president of the Integrated Benefits Institute, a nonprofit health. To better understand employer health benefit decision making, how employer health benefits strategies evolve over time, and the impact of employer decisions on local health care systems.

Data Sources/Study Setting. Data were collected as part of the Community Tracking Study (CTS), a longitudinal. Of all the fringe benefits offered by employers, health insurance was by far the most important: 65 percent of workers in another survey ranked health insurance as the most important employee benefit, compared with 21 percent who said a retirement savings plan was the most important benefit (Salisbury and Ostuw ).

The future of health care as an employee benefit essay
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