Health Insurance

Health insurance benefits impact the organization’s strategic goal-setting process

Quality manpower to any company is a significant asset. The health insurance provision possesses great impact on the company’s overall process of setting goals. Once a company has attracted quality staffs within its organization it is imperative that it continues to offer quality health insurance in order for preventing existing staffs from shifting to their opponent firms. Every company should consider including both contingent and non-contingent workers in the health insurance program. The firm is therefore able to retain its mainly valuable task force.     

When an organization provides its workers with health insurance benefits, the workers are confident that in case of any eventuality they are covered and are thus able to attend to their duties with full potential (Jon & Sally, 2003). It is evident that employees who are covered are usually productive since they are aware that their employer values them. An employer is able to gain loyalty and trust. When an organization pays health insurance premiums, the entire paid amount is normally not taxed; this translating to a company paying less tax and he remaining amount is utilized in motivating the employees. Similarly, once staffs acquire cover through their employer, their premium share contribution is normally deducted prior to taxation in contrast to using another health insurance service which would mean paying after their income has been taxed.   To the employee this reduces the amount subjected to tax (American College of Physicians, 2009). Providing health insurance to a group translates to lower rates in comparison to individual health care. The employees are able to create savings on the premium amounts which would alternatively been made if made individually. Savings made will be used in other ways to improve their living standards. Health insurance reduces the chances of lengthy absenteeism from worker since a worker is faced with a health problem they are able to receive quality care. This additionally improves out and commitment (Barbarotta, 2010). Employees tend to at all times respect organizations who are concerned about their health needs. This promotes understanding and harmony between the executive and the workforce. The thought that the employer cares for their needs increases morale and respect to the management.

Controlling health insurance benefit expenses

Controlling the health insurance benefits is among the top goals for a majority of employers. This should be done through with utmost concern so that the company retains the benefits as hiring as well as retention instrument. With both elements being of utmost concern the organizations could attain this through a number of ways (Jon & Sally, 2003). Firms require locating immediate cost-reduction measures as well as implementing changes which have impact on the expenses attached to health insurance. These measures should be on a large scale to ensure immediate cost savings simultaneously enable fundamental transformations in the way the firm and staffs approach their insurance. To start with a firm requires compiling information and data regarding the staffs’ healthcare services consumption (Coakley, 2013). The collected data acts an instrument of evaluating and establishing the trends and frequency of healthcare usage and costs that tag along. The data arms the company with information necessary to curb the spiraling costs. The data further enables accurate and precise planning grounded on actual figures as well as history.   An organization may also engage staffs through encouraging them to make informed life decisions which would affect their health. This could be attained through seminars as well as training programs to sensitize staffs about their health (Deloitte, 2013). Plan design along with vendor assessment or evaluation is an obvious point to start whilst addressing the health insurance costs; though a short term measure creating alterations to the present plans usually results to considerable costs changes.

Where applicable, organizations require engaging in an on-site healthcare services provision. The on-site service lowers cost in addition to making it simple for staffs to engage in preventive care, screening and other activities (Coakley, 2013). preventive healthcare has been known to reduce the chances of illnesses within communities thus when companies adopt it, health insurance costs will certainly go down since less individuals will fall ill. A company may introduce screening practices in like three times a year. This is once in every four months; many of the chronic diseases are easily noticeable through regular screening and their early treatments are less expensive. even considering the non-chronic diseases early screening makes it easy to identify arising symptoms thus making it easier to treat them early enough (Deloitte, 2013). It is clear that many companies hold their workforce for nearly two-thirds of a day. This leaves the staffs with little time for fitness exercises and which is essential in preventing various critical diseases. For instance illnesses associated with the heart are linked to heavy weights and which is associated with inactivity. An organization may establish a fitness gym within its premises with an aim of improving the workforce’s health status. This strategy though possessing lengthy term impacts is an activity that is very effective and applicable.

Assuming that the goal behind health insurance provision is attracting as well as retaining employees, and the fact that the organization spends millions of dollars within the activity that has no direct result to output then managing it is critical (Deloitte, 2013). In order to further address the rising costs involved in health insurance the following measures could come in handy. To start with the employer requires providing incentives to staffs to encourage them shun from bad behavior such as smoking. Smokers normally cost their employer approximately $4,000 on an annual basis. Assuming that the smokers in an organization are about 20 this translates to $80,000 dollars annually towards dealing with a single healthcare concern (Coakley, 2013).  Establishing a comprehensive program which eradicates smoking during work hours would pressure them towards quitting the expensive habit. Though restrictions may not be very effectual counseling programs may be initiated whereby the smoking individuals are incentivized if they join voluntarily can be a good approach. The actuality that habits such as smoking are connected with chronic diseases then which are extremely costly to treat makes it imperative to cub the vice.

Additionally an organization should make it a culture for its workers to receive treatment from public health institutions: it is certain that public hospitals provide equally quality healthcare as private hospitals. Prior to make it a culture, the organization should explain to is employees the need to cut health costs (Deloitte, 2013). Providing drug discounts like Wal-Mart does has a dramatic effect on decreasing prescription costs. Wal-Mart provides greater than 300 generic drugs in addition to above 1,000 over the counter medication drugs for only four dollars. By 2009 the visits to the emergency room were $1,318 whilst the standard physician costs were $199.

Wellness initiatives make certain that employees are healthy in addition to reducing physician visitations. Employers have a duty towards educating staffs on issues regarding maintaining a better health status along with adopting positive behaviors that will reduce illnesses. Organizations must shop for competitive insurance plans which are less expensive but quality. If these measures are adopted by an organization then health insurance costs will drastically decrease and the company will continue to use the benefits as a retention and recruitment technique.

References

American College of Physicians. (2009). CONTROLLING HEALTHCARE COSTS WHILE PROMOTING THE BEST POSSIBLE HEALTH OUTCOMES. Retrieved from http://www.acponline.org/acp_policy/policies/controlling_healthcare_costs_2009.pdf

Barbarotta, L. (2010). Direct Care Worker Retention: Strategies for Success. Retrieved from http://www.leadingage.org/uploadedFiles/Content/About/Center_for_Applied_Research/Publications_and_Products/Direct%20Care%20Workers%20Report%20%20FINAL%20%282%29.pdf

Coakley, M. (2013). Examination of Health Care Cost Trends and Cost Drivers. Retrieved from http://www.mass.gov/ago/docs/healthcare/2013-hcctd.pdf

Deloitte. (2013). Health care costs, benefits, and reform: What’s the next move for employers? Results of Deloitte’s 2013 Survey of U.S. Employers. Retrieved from http://www.deloitte.com/assets/Dcom-UnitedStates/Local%20Assets/Documents/Health%20Plans/us_lshc_2013employerstudy_111213.pdf

Jon B. and Sally T., (2003). Managing Costs, Managing Benefits: Employer Decisions in Local Health Care Markets