Employee Health Care Challenging Empoyers

Employee Health Care Challenging Employers

Brooks, A. (2011, October). Employee health care challenging employers. Retrieved from www.financialexecutives.org

In today’s workforce, employers are facing more and more challenges when it comes to employee healthcare benefits. With Obama Care rolled into implementation phase, changes to the structure and procedures have changed for Human Resource Departments within companies throughout the nation. In the article Employee Health Care Challenging Employers we see firsthand means in which companies restructure healthcare benefits in order to continue with a health care option for their employees. With these options comes a sacrifice by the employers and the employees of this nation. The following analysis will give an overview of challenges and healthcare options companies are utilizing to combat against the fast paced climb in benefits cost.

In the article we see just how much of an impact the Patient Protection and Affordable Care Act (PPACA) will affect businesses offering healthcare benefits to employees. In a National Business Group Health survey, large companies estimate “health care benefit costs will increase by an average of 8.9 percent this year, compared with an average increase of 6.9 percent last year. (Brooks, 2011) ” With these increases companies are looking at other ways to provide healthcare options to their employees. The first option introduced in the article is the Self- Funded Plans. These plans are funded strictly from employer’s contributions and employee premiums. This type of healthcare option is best suited for large companies because “large companies tend to have a large risk pool and are able to better predict and price the potential losses from benefits. (Brooks, 2011) ” The next option covered was the High Deductive Health Plans with Health Savings Accounts. This option allows employees to contribute pre-tax funds into a savings account to use for medical expenses. All unused...