Create a ppt on Health-Care Law Changes
Health-Care Law Changes
Health care became one of the most vital issues in the United States especially that the government is requiring companies and people to have healthcare insurance, or there is an option to pay fines. However, health care is being a worthy benefit that employees look at while applying for jobs. Healthcare benefits became 1 of the top motivators that encourage people to be in a certain company.
Providing healthcare in our company will obviously attract new people due to the higher costs of healthcare insurance. A lot of people cannot afford the high costs to have it. For instance, my aunt was hired in an elementary school as a full time teacher aide with a salary of 13,000 dollars. Her main incentive was the healthcare insurance for all her family's members including her (husband and three children). In addition to attracting people, healthcare benefits has a great impact on the organization's productivity. Health benefits lead to more satisfaction in the company, and when people are highly satisfied and happy at work because the organization is valuing their work, they would perform better.
1) Comply with the law. Be sure you have selected either the Tier 3, or Tier 4 Plan for health benefits, as well as the Prescription Drug Plan. 2
Pros of complying with the law
Offering healthcare insurance will surely attract more people and make them more interested in our company. Also, increasing their benefits is a way that representsour acknowledgment and obliged for their work. When the company shows the importance of their performance, they would seem happier that leads to increase in their productivity. Moreover, healthcare benefits can be a significant factor for companies to compete with each other. We are offering a premium coverage, and that means we are giving a great offer that will bring more people to our company. So, we can chose best people for perfect positions and lastly it is all about benefiting our company in general.
Cons of complying with law
The negative side of complying with the law could only be the high costs of providing the premium coverage for employees. Even though we offer premium coverage, employees still have to pay for some specialists visits. Furthermore, paying high costs for health care benefits fewer the employees retirement plans options.
2) Pay the fine.
Pros of pay the fine
The employer mandate is designed to make the employers provide affordable health insurance to their full-time or full-time equivalent workers. If the employer fails to achieve this mandate then he will be penalized. The penalty, usually referred to as a free-rider penalty, is triggered when an employee opts to obtain the government's subsidized health care coverage rather than the coverage offered by his employee. The company has decided not to comply with the law and instead pay the fine of $750 for each employee that opts out of its Tier 1 coverage plan. This decision is beneficial in a number of ways.
For starters, the total cost of paying the fine is significantly smaller than upgrading each full-time employee to a Tier 3 health coverage plan. Instead of tying all those funds to covering the full time employees, the company can use the additional money for other profitable purposes. In addition, the company can also retrench some of its workforce under the guise of cutting costs on medical coverage. Human resource is the biggest expense that a company has and retrenching some of the ‘non-essential' workers can help free up money to be invested elsewhere. Another advantage of paying the fine instead of complying with the law is the fact that the liability of the business when it comes to employee health is curtailed. Unnecessary trips to the doctor will reduce because the employees are now going into their pockets to pay for the doctor's visits although these expenses have been discounted by the government.
Cons of pay the fine
There are also significant drawbacks of not complying with the law. Qualified and talented employees will not be drawn to a company that does not offer sufficient health coverage to its employees. Benefits such as dental and premium health care coverage attract the most qualified people. These are the people with the biggest talents that could give the company a competitive edge in the market. Denying such people the required health coverage will make them seek better pastures whereby they are covered the way they deem fit. The penalties also increase the company's current liabilities, which will definitely have a negative impact on the company's bottom line. The profit margin will be substantially lower while the company's debt seems to be growing. On that same note, the penalties will increase with increase in benefits' status. When employees are promoted, their benefits and allowances also increase. If the company continues to refuse to pay for increased coverage of its full time employees, then the benefits' increase will lead to an increase in penalties. The firm might soon find itself flooding in penalty arrears to the government as a result.
Review the attachment:
Attachment:- Health-Care Law Changes.pdf