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The Consumer

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Submitted By Love2013
Words 2250
Pages 9
The Consumer
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HSA 505
Strayer University
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May 27, 2012

1. Describe the selection process you would use to make the most cost-effective and employee-friendly decision.
Benefits being provided by an employer can provide a source of financial protection to an employee. Today many health care organizations offer health benefits along with disability, basic life and tuition assistance. In an attempt to recruit and retain skilled employees, employers should consider significantly improving the selection of benefits they provide. The position as HR Director requires me choosing the most cost-effective and employee-friendly benefit package for the company. For me, the most important step in the selection process would be to create a list of what the needs of the employees might be. In the U.S. today many companies are made up of a diverse workforce and making a cost-effective and employee-friendly decision when it comes to employee benefits can be difficult.
In this case, the company is looking at their benefits package as a means of saving money.
Employee benefits can be used to by employers to strengthen the relationship with their employees. So, when choosing the best benefits package it is very important to consider the workers. The wants and needs of the workers may vary in a diverse work environment. In a workforce comprised mostly of women who have young children health care and childcare may be options that will motive them. Then again, if the majority of the workforce is new college graduates health care and tuition reimbursement would be very encouraging.
The goal of a benefit package should be to retain and attract skilled employees while increasing productivity and saving money. However, with the rising costs of health care, a changing workforce, and different lifestyles, employers are being forced to examine a different approach and options. Companies these days have to at least abide by the rules outlines in the Affordable Care Act. According to Healthcare.gov (2012), “all new plans must cover certain preventive services such as mammograms and colonoscopies without charging a deductible, co-pay or coinsurance and young adults are allowed to stay on their parents’ plan until they turn 26 years old.” In addition it “prohibits insurance companies from imposing lifetime dollar limits on essential benefits, like hospital stays and prohibits insurance companies from withdrawing coverage if a person develops an illness that could result in death.It is important that time is taken when deciding on a benefit package because choosing the best employee benefits package is very important for business but more so for employees.
2. Identify the information you would need to make this decision.
There is a certain amount of information needed in order to make an informed decision about an employee benefits package. Today employees are demanding a more comprehensive benefit package. Furthermore, many people are not satisfied with their jobs because of the benefits provided. According to Halkos (2011), “a national survey found that among employees highly satisfied with their benefits packages, 81 percent were also satisfied with their jobs.” They further reported that “employees view benefits as the foundation of their financial safety net.”
The most important information to be gathered is to discover the needs of the employees. According to a report by the Bureau of Labor Statistics (2002), “women only made up 30 percent of the labor force in 1950, compared to 47 percent today. This increase means employers must consider more facts when coming up with the budget allotted for a benefit package. In addition, the workforce is becoming more ethnically and racially diverse and all of these things contribute to an array of needs and likings when it benefits are considered.
If an employer offers flexible benefits it can lead to greater satisfaction in a diverse workforce. Since providing more choices is not an option, it is important for me to keep open communication with all employers and properly inform them of the services they are receiving and answer questions they may have.
It is not possible to create a good benefit package that is affordable to the employer and employee in this case because there is no one plans that can not fit the needs of everyone involved. In addition, not being permitted to make any increases or changes to the package that will result in additional spending is very limiting. If employees are including in the decision making to any degree, they may feel better about the benefit package even if it is not what they really desired. It takes additional funds along with time and energy to create the best benefits package for all employees but it could ultimately lead to more satisfied and motivated employees.
3. Discuss the ramifications of your decision on employees.
Providing a comprehensive benefit package along with appropriate compensation in exchange for work performed can dictate the success of an organization. So, the person appointed to perform this duty should have a particular collection of skills.
Managing benefits requires understanding of medical, life insurance, dental, long and short term disability and voluntary leave such as paid holidays, sick leave, and vacations. In addition, management must also have knowledge of the rules that pertain to benefits, for example, the Affordable Care Act and all legally required benefits.
Today having an affordable insurance plan is very important to people and their families. For many people it is challenging deciding on which plan to choose. A benefit package should be designed with the employee in mind, taking into account their needs and offer them choices. Given the economic issues many employers are having difficulty making it possible and employees are becoming disappointed and feeling unrewarded for their hard work. Given that one plan does not fit the needs of all people, crafting a benefit package for the diverse workforce that exists today is becoming more and more complex. 4. Evaluate the factors that influence your selection of a package.
Deciding on a suitable benefit package it is a huge decision to make. Today, many organizations give employees several options to choose from but provide a limited amount of information about the plans. This can leave an employee feeling overwhelmed by the choices offered. In order to choose the right insurance plan, determining whether or not I can afford it is most important.
Choosing the best benefit package can play a critical role in my life. Two factors that are crucial to making a decision on an employee benefits package are cost and a flexible benefit plan. Some employers offer benefit plans that allow employees to choose among different levels of coverage and benefits. According to Encyclopedia.com (2012), “a flexible benefit plan presents a number of advantages:
• Such plans enable employees to choose options that best fit their own needs.
• Deciding among the various options makes employees more aware of the cost of the benefits, giving them a real sense of the value of the benefits their employers provide.
• Flexible benefit plans can lower compensation costs because employers no longer have to pay for unwanted benefits.
• Employers and employees can save on taxes. Many of the premiums may be paid with pretax dollars, thus lowering the amount of taxes to be paid by both the employee and the employer.”
When trying to fit within a budget it is difficult to choose the plan that is most needed. The need of a healthy person in their early twenties is very different from the needs of an older adult or family of three. When operating within a budget I pay attention to where all of my health dollars are being spent. In order to get the coverage I need at prices I can afford it is important that I consider all of my health care concerns.¬
5. Analyze to what extent the cost of the program influences your decision.
Nowadays, everyone is being affected by health care and choosing the best health plan can be an unpleasant topic because of the cost. It can be a challenge to find the health care plans that suit my needs because of the limited number of options offered by most employers. Moreover, selecting a plan that meets my needs can put a strain on my pocket. To choose a good health care package I can’t just base my decision on the cost of the monthly premium but this factor is greatly considered. According to Maling (n.d.), “there are several tips to help choose the best health insurance plan, as well as some advice on how to get the most a plan.”
• Research and get informed
• Make a list of your priorities
• Consider a health savings account.”
Knowing what the plan covers and does not cover, copayment amounts, deductibles, and coverage limits is most important and are significantly researched. In addition, when deciding on what package to choose I look at what my needs are. I look at my overall health, pre-existing conditions, whether or not diagnostic tests are covered and at what cost to me. As a single, disabled person, I would especially need a plan that is accepted by most if not all of my current health care providers. When HR considers making changes to the benefits package, it will help me to identify changes before enrolling for the upcoming year. There may be specific services that have been removed from the benefit package and an increase in the monthly premiums. If considerable changes are made, switching plans may be taken into account.
6. Explain possible alternatives if you chose not to participate in the benefits package for the upcoming year.
When choosing to enroll in a benefit package that is not offered by an employer extra research is required. The first step is to examine all of the options available. Nowadays, trying to choose the most affordable plan not sponsored by an employer can be difficult when coverage is also top on the list. In making this decision, I identify my needs, the providers and hospitals included in the network, differences in the plans, and the cost of the plans. When the time comes to compare the plans, according to Sweeney (2012), “weighing the options is important and means considering several factors: choice, services, and trade-offs.”
To a great extent choice is very important to me. The type of plan has a lot to do with having the freedom to select a provider or hospital. The most affordable plans are managed care plans and include a list of physicians to choose from. The HMO plans require that a primary care physician be selected as a gatekeeper and restrict the list to providers in a specific network. A plan member has to obtain a referral from their primary care physician before seeing any other provider. With the POS and PPO plans there is a greater selection of physicians from different hospitals and practices and although they cost more, they allow for the gatekeeper to be bypassed if needed.
Services offered take precedence for me because of my pre-existing conditions and complicated medical problems. Each plan has different requirements when it comes to seeing a specialist. It is very important for me to have easy access to specialists. With most plans, seeing a specialist means paying a higher copayment or a higher monthly premium and being allowed to see an out of network specialist.
In order to make a decision on a health care package it means pairing the amount of coverage needed with the cost of the plan and the options I want. In actuality, it involves making some trade-offs. According to Sweeney (2012), “it is important to consider these three elements in a decision:
• Cost. In addition to monthly premiums, most health plans require that a patient pay a co-payment for office visits, and also for emergency care and hospitalization. Because these costs aren't presented up front, finding out what they are ahead of time and then tallying the expenses for a typical year is critical.
• Coverage. Considering how well the plan's benefits meet your needs, and whether pre-existing medical condition or other special needs are covered is of the essence. Making it a priority to know what a plan does and does not cover or limitations of coverage.
• Choice. Freedom to see a specific doctor may be some people's primary reason for selecting a particular plan. So it should be greatly considered.”

References
Bureau of Labor Statistics (2002). A Century of Change: The U.S. Labor Force, 1950-20 Retrieved May 26, 2012, from http://www.bls.gov/opub/mlr/2002/05/art2full.pdf
Encyclopedia of Management (2009). Employee Benefits. Retrieved May 26, 2012, from http://www,encyclopedia.com/topic/Employee_benefits.aspx

Halkos, E. (2011). How to Choose the Best Benefits for Your Employee Base. Retrieved
May 24, 2012, from http://www.voluntarybenefitsmagazine.com/article/headline-how-to-choose-the-best-benefits.html
Healthcare.gov (2012). Key Features of the Affordable Care Act, By Year. Retrieved May 24, 2012, from http://www.healthcare.gov/law/timeline/full.html
Leopold, R. (2009). The Benefits Edge: Honing the Competitive Value of Employee Benefits.
Retrieved May 25, 2012, fromhttp://www.whymetlife.com/benefitsedge/MetLife _TheBenefitsEdge_Excerpt.pdf
Maling, B. (n.d.). How to Choose the Best Health Insurance Plan. Retrieved May 25, 2012, from http://www.hrworld.com/features/choose-health-insurance-plan/
Sweeney, L. (2012). Assessing Your Employer's Health Insurance Options. Retrieved May 26,
2012,from http://www.experience.com/alumnus/article?channel_id=manage _your_career&source_page=additional_articles&article_id=article_1126286323678

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