Offering health benefits to employees is something almost every employer wants to do. After all, it helps your employees live better, healthier lives, and it protects them in the event they do become ill or injured. Many small business owners, however, feel they can’t offer the benefits they want to offer to their employees. Cost is the number-one concern when it comes to providing health benefits. You’re also aware of the ways offering healthcare benefits can help you as well. It gives you peace of mind knowing your employees are looked after. It can also create value for the business, in addition to lowering turnover and helping you attract the best and most talented candidates. As an employer, you have several different options when it comes to offering health benefits. A health reimbursement arrangement is one option now available to you as a small business owner. Whether you’re a small business adopting your first healthcare benefits plan or a larger employer looking to add on or revise, here are a few good reasons you should consider an HRA. …show more content…
Employees Love Them In anything you do, particularly where it concerns benefits, you’ll want to consider how it will impact your employees. Many employers do what’s best for the business, which can leave employees out in the cold. Employees may become disengaged or decide to look for new work opportunities. Health reimbursement accounts are one benefits move employees are likely to applaud. This flexible benefits choice offers employees more freedom in how they use their health benefit dollars. Given flexibility is a major concern for many employees today, HRAs are a smart move from the employee vantage point. 2. They Offer More Flexibility As mentioned, HRAs are a flexible health option, which is another very good reason for employers to consider offering them. Today’s employees want more flexibility than ever before, and HRAs can help you achieve
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.
They really look out for the best for the patient and make sure that they are receiving the best quality of care by their physicians. One major benefits of managed care is that they have lower costs for you as the patient. You typically think that if you pay less you are going to get less, however with managed care they want you to pay less but still receive the same quality of care. Managed care plans keep the costs down by contracting with providers and referring these providers to their patients. Employers tend to lean towards these types of benefits. That is why many employers have switched to managed care plans (Cyrene, 2015). Under most managed care plans, they encourage their patients to get annual preventive physicals and get early treatment when sick so it doesn’t progress into something more (University Human Resources, 2015). For patients under managed care plan providers are always readily available to them. All these healthcare providers are all credentialed (Cyrene, 2015). Managed care plans also lower the prices on prescriptions for their patients as well. Managed care plans typically lean towards providing the generic prescriptions and lowering their copays too (Jackson,
REI’s HR department description leads one to believe that HR has a larger role than just traditional functions.
HSAs and HRAs provide an exciting new possibility for employers who seek to better control their health care costs. These plans also represent an opportunity for employees to become more active in the management of the health care that they receive. The choice between an HSA and an HRA deserves an employer’s careful consideration. The administrative, practical, and tax implications of each must be carefully considered.
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.
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.
Offering employee benefits is one way a company must competes in today’s marketplace to retain old employees and attracts new ones. These benefit packages may range from offering basic health insurance to additional discretionary and perk benefits such as vacation and retirement packages. Benefit packages are often a large portion of employee costs and Federal mandates require an employer to carry and offer certain benefits even if they offer nothing else. Federally required employee benefits make up approximately a quarter of the costs associated with employer offered benefit packages. Some of these mandated benefits include Social Security, Worker’s Compensation Insurance, and the Family Medical Leave Act.
To comprehend our current health care system, it is important to understand the history and how health care has evolved in the United States. The healthcare system we have now didn't always exist. Believe it or not, before 1920, most people would not of known what health care coverage meant! So how did the United States turn into one of the few developed countries lacking nationwide healthcare? Understanding U.S. healthcare history will help you understand the dynamics that built the system that, we struggle with today. Furthermore, I will make conclusions on the current problems we are facing.
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 .
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
This is also a very important category because these added benefits could be the deciding factor for deciding to accept, or leave, a position or job. Many unionized jobs already have the basic insurances, such as health and pensions, but employers should be available to hear out special cases. In case of family health emergencies, or personal health emergencies, unions have stepped in to grant time to workers who may be faced with these problems. The best part about the unions fighting for this right is that these workers can focus on helping their family, or themselves, get better and not worry about losing their position or job. Workers, however, rarely know about this right, which means that it is important that unions inform these workers of this in case of such emergencies.
...ue to numerous medical errors. With the amount of medical errors that currently do occur which is a current health care issue it cost the health care billions of dollar each year to fix the mistakes that were made.
Health care has always been an interesting topic all over the world. Voltaire once said, “The art of medicine consists of amusing the patient while nature cures the disease.” It may seem like health care that nothing gets accomplished in different health care systems, but ultimately many trying to cures diseases and improve health care systems.
Employee Health and Health Insurance The health of employees is a major concern for employers. A healthy employee is more productive as compared to an unhealthy employees implying that an organization with healthy employees will record higher levels of productivity. In this regard, one of the benefits that employees enjoy from their employers is a health cover that enables them to access healthcare services using the health insurance cover from their employer.
Whether an organization consists of five or 25,000 employees, human resources management is vital to the success of the organization. HR is important to all managers because it provides managers with the resources – the employees – necessary to produce the work for the managers and the organization. Beyond this role, HR is capable of becoming a strong strategic partner when it comes to “establishing the overall direction and objectives of key areas of human resource management in order to ensure that they not only are consistent with but also support the achievement of business goals.” (Massey, 1994, p. 27)