Case Study: Business Feels the Consequences of the Uninsured Problem

There is a huge issue in American society today regarding uninsured Americans. It is especially difficult for people who are working a full time job and are still not offered insurance by their companies, or simply cannot afford the insurance that is offered. From the stakeholder’s perspective, this issue weighs greatly on the organization’s productivity and revenue. Stakeholders must take cost, quality, and access into consideration when they review this issue.

The cost of running an organization is impacted greatly when uninsured employees become ill. An employee who has no insurance will more likely go to work sick and not be productive or stay home until they feel better. They are much less likely to seek care because they cannot afford the out-of-pocket expense. This lowers company productivity because a sick employee will come into work sick, but not be able to perform at the same level as a healthy worker, and in turn, this raises overhead costs.

There was a Gallup poll taken in October of 2011 that determined that unhealthy workers’ absenteeism in America lead to $153 billion in costs.1 There are reasons sick workers cost companies that amount of money. When a healthcare worker is sick, management must seek a temp to replace that employee or pay a different worker overtime in order to cover the shift. Also, if the sick employee decides to go to work while sick, there is a risk of exposure to other workers. This ends up costing the business even more money. According to a survey done in 2008, a company can experience cost in three ways when it comes to employee absenteeism. “Absences have three areas of financial impact: Direct costs for the benefits or wages paid to employees while absent. Indirect costs for lost productivity or the replacement worker expenses to “cover” absences and minimize loss of productivity. Administrative expenses, whether due to internal staffing and overhead, or to vendor services.”2

The quality of care that a stakeholder’s...