Employer Sponsored Health Care Essay

Submitted By carolj9
Words: 1080
Pages: 5
Open Document
Ethics Debate
IS USING PART-TIME OR
CONTRACT WORKERS AS A WAY
OF LOWERING TOTAL PAYROLL
COSTS BY AVOIDING PAYING
BENEFITS GOOD BUSINESS AND
ETHICAL BEHAVIOR?

Employer Sponsored
Health Care
ENTITLEMENT OR BENEFIT

Obamacare

In 2010 The Patient Protection & Affordable

Care Act was passed.
Requires that employers with 50 or more

employees provide health care coverage to it’s full-time workers (30 or more hours/week)

Response to Obamacare
• Hundreds of businesses, schools, and

government agencies have said they cannot afford to offer health care coverage to their employees who work 30 or more hours/week.
• Some have cut hours so that employees are under the 30 hour requirement
• Others have laid off employees and have instead hired contractors
• 2 million workers were facing cuts in their hours* *

http://www.nydailynews.com/news/politics/companies-cut-worker-hours
-avoid-obamacare-report-article-1.1333305

Who are They?
Wendy’s, Olive Garden, Red Lobster,

Forever 21, Subway, Papa Johns, Regal
Entertainment, Seaworld, Trader Joe’s,
Home Depot, Five Guys, Noblesville Schools and many others
http://news.investors.com/politics-

obamacare/062414-669013-obamacareemployer-mandate-a-list-of-cuts-to-workhours-jobs.htm list of 429 companies

History of Employer Sponsored Health
Care
Wage & Price controls imposed by Federal

government during WWII.

Short supply of workers, increased demand

for goods.

Employers could not raise wages to attract

workers so instead they offered fringe benefits (health insurance)

Many Attempts for National Health
Insurance

Roosevelt administration
Truman administration

(Both opposed by AMA and labeled
Socialism)
So Labor unions focused on employersponsored coverage because it was more achievable More attempts at National Health
Insurance Plan

Ted Kennedy in 1970’s
Clinton administration
Obama administration passes the Patient

Protection & Affordable Care Act in 2010

Cost to Employers
Employers pay 85% of insurance premium for

employee; 75% for employee’s dependents
In 2008: avg premiums were $4700-$12,500

per year for family
Since 2001 premiums have increased 78%

while wages have risen 19% and inflation
17%
"Health Insurance Premiums Rise 6.1 Percent In 2007, Less Rapidly

Than In Recent Years But Still Faster Than Wages And Inflation" (Press release). Kaiser Family Foundation. 2007­09­11.

The Moral Problem

Is it good business practice and ethical

behavior to use part-time employees and or contract workers as a way of lowering total payroll costs by avoiding paying benefits
(primarily health insurance) ?

Goals

Goals of Business Owners: keep payroll costs

low
Goals of Employees: job with good benefits

including health care coverage

Norms

Norms of Business Owners: act in fiscally

responsible way, cut costs

Norms of Employees: seek employment

with good benefit package

Beliefs

• Beliefs of Business Owners: my primary

responsibility is to my bottom line (or shareholders) in order to be viable. Cutting hours to part-time level is only way to remain competitive and in some cases the only way to survive

• Beliefs of Employees: entitled to good benefits

Values

Values of Business Owners: My goals, norms

and beliefs line up and I place equal value on each. Values of Employee: My goals, norms, and

beliefs are in line with each other but in this climate I may not be able to seek and find employment with a good benefit package

Good Business ?

It is good business to cut hours to part-time

and/or use contract workers to cut payroll costs by avoiding paying for health insurance
Some companies claim that it is the only way

to survive.

Ethical Behavior?

Who is Benefited? The Company.

Because the company is not being harmed (by having to pay for health insurance for more full-time workers), the company is being benefited by using part-time workers.
Also benefited is part-time workers. More of them will be hired.

Ethical Behavior ?

Who
Show More

Related Documents: Employer Sponsored Health Care Essay

Compare Cost Control Strategies Essay

Compare Cost Control Strategies Employer-Sponsored Health Plans- When a company provides employer-sponsored health plans, in which the employers buy from insurance companies, the employer’s human resource department selects which products to offer the employees after negotiating with health plans. A basic plan is provided to the employee with the option to purchase additional health care items, also known as riders, at the employee’s expense. Some of the riders offered are, but not limited to,…

Words 293 - Pages 2

Oboma Care Essay

AFFORDABLE CARE ACT Summary of Provisions Affecting Employer-Sponsored Insurance Johnny R. Allen MBA 6600 Section: DS Class: Healthcare Law Teacher: Jim Morgan Date: 08/13/2013 AFFORDABLE CARE ACT Summary of Provisions Affecting Employer-Sponsored Insurance Much of the public discussion about the Affordable Care Act (ACA) has focused on the expansion of coverage to the uninsured through subsidies to individuals and the expansion of Medicaid. The law will also result in changes…

Words 2804 - Pages 12

Disparities In Health Care

States spends 17 percent of its gross domestic product (GDP) on health care, by far the most of any nation in the world. In addition, the rate of health care spending is rapidly surpassing the rate of growth of the economy, consequently by 2080 the U.S economy is projected to account for forty percent of the health care spending ( ). Despite this high level of spending, there remains an enormous disparity in access to health care in our nation. Many of these disparities can be attributed…

Words 1189 - Pages 5

Critical Analysis Report Essay example

Lo Sasso Name of Journal: Journal of Health Economics Date of Journal: January 2015 Volume: 39 Pages: 259-272 Summary The health reform that began in the last decade and is beginning to take a firm hold of the United States has several provisions that help the utilization of primary care outpatient care for the United States population. The idea and reasoning behind these provision and ultimate goal is to improve the health of the population through primary care and this will ultimately improve healthcare…

Words 1396 - Pages 6

Health Insurance Research Paper

Health insurance is a type of insurance coverage that covers the cost of an insured individual's medical and surgical expenses. It was originally designed to help patients with major medical expenses that occurred as a result of an unexpected illness or injury. Depending on the type of health insurance coverage, either the insured pays costs out of pocket and is then reimbursed, or the insurer makes payments directly to the provider. In health insurance terminology, the "provider" is a clinic, hospital…

Words 814 - Pages 4

Types Of Exceptionalism

particularly odd: companies choose health insurance for their workers. Almost all firms with over 200 employees offer health coverage. Company sponsored insurance is common for working-age Americans. In no other big and rich country is it the norm. But this form of paternalism is diminishing fast, accelerated by Barack Obama’s health reform. The changes have broad implications for workers and the health industry. Poll after poll shows that employers are revising their health plans. On August 18th the Federal…

Words 459 - Pages 2

How Will The Affordable Care Act Affect Jobs?

Affordable Care Act Affect Jobs? Timely Analysis of Immediate Health Policy Issues March 2011 John Holahan and Bowen Garrett Introduction Opponents of health reform have made strong claims about the effect of the Affordable Care Act (ACA) on jobs. Supporters of legislation to repeal the ACA, the so-called “Repealing the Job Destroying Health Care Law Act,” argue that the law will increase unemployment in an already fragile economy.1 The argument is that the requirement to provide health insurance…

Words 4246 - Pages 17

Obama Care Employer Mandate

Shoffner Teresa Ishigaki English 125 11/4/14 Obama Care Employer Mandate The Affordable Care Act (Obama Care) was signed by our current president Barak Obama on March 23, 2010. Obama care was enacted with the goals of increasing the quality and affordability of health insurance, lowering the uninsured rate by expanding public and private insurance coverage, and reducing the costs of healthcare for individuals and the government. The Obama Care employer mandate is a requirement that all businesses with…

Words 1009 - Pages 5

Jfreehahn HSM 315 Week 3 Assignment Essay

Act H.R. 3590 Introduction There has been much debate regarding the impact of the Affordability Care Act on health care since passed in to law. In this paper, I will discuss one of the key components, the uninsured population. The Affordable Care Act (ACA) legislation constitutes the largest change to America’s healthcare system since the creation of Medicare and Medicaid. Acquiring affordable health insurance coverage can become a reality for many patients, including those who have been uninsured…

Words 1071 - Pages 5

Medicare Vs Private Insurance

private individual health plan, an employer…

Words 899 - Pages 4