Benefits Of A Healthcare Accounting Class

Solutions: Business health insurance is a major cost of doing business, especially for small companies as groceries. With premiums soaring, many small business owners are asking their employees to shoulder more of the financial burden or cutting benefits entirely. Grocery health insurance may take a huge chunk out of the revenue, but benefits often attract better employees and help retain existing workers. Satisfied, healthy employees are more likely to help your business grow. As a mediator that struggling to provide health insurance, the following solutions can reduce the small business health insurance benefits and costs.

In 1954, Congress passed legislation allowing employers to provide health insurance benefits to employees on a tax-free basis (Sih and Singh 99). This legal provision marked the beginning of the rapidly expanding health care costs still apparent today due to the major incentives provided by the government to obtain employer-based health coverage. The overwhelming popularity of employer-based health insurance has led to a serious market inefficiency resulting from the system of third-party payment. As individuals rely on their insurance companies to pay for their medical expenses, this provides

As the new healthcare law takes effect insurance premiums are expected to rise. On average for the last six years insurances premiums have gone up six percent per year. The average annual cost that employers pay to cover their employees is around $10,000 for each employee. Usually employees are responsible for 20 percent that total or $2000. At this time the new law has done

Employers are continuing to face rising health benefit costs and are constantly looking for alternatives to control these escalating costs. Health benefit premiums continue to increase at a double digit pace for employers and employees (Poor, Ross & Tollen, 2004). This escalation is putting environmental pressures on all impacted stakeholders. Companies and insurance providers are squeezing this industry to get a handle on cost while still providing an appropriate level of care. This cycle puts the patient front and center as the ultimate stakeholder who incurs changes in health benefits. This mandate of cost control, efficient operations and market share has facilitated a constant analysis of the dynamic health

Businesses are left with an even bigger challenge. The Affordable Care Act requires small businesses to provide health insurance regardless if they are able to come up with the money for it (Stevens & Harler, 2012). Businesses that exceed 50 full time employees will be forced to make available health insurance; if they do not, they will be subject to a $2,000 penalty for every employee working there (Stevens & Harler, 2012). The benefit is that the company’s first 30 workers will be deducted and will avoid the fee (Stevens & Harler, 2012).

The penalties companies will face are intended to motivate them to offer suitable health insurance to their employees, Bob Mcdevitt, union President of Local 54 of UNITE-HERE said, “The average cost of health insurance for my members is $6,000 per year. If the company pulled out that cost would be reduced to $2,000 and that’s supposed to be a penalty? A basic economic principle is if you can walk away from those kinds of legacy costs, it’s very enticing for any employer” (Miller, “Businesses Fearful”). I asked a

Many small business owners simply can’t afford to pay for part of insurance so they are forced to find a way out. Some businesses have cut employee hours and fired workers. This way, they don’t have to pay employee benefits. Others have decided that it is more cost effective to pay the fine for not insuring employees than it is to pay for employee insurance.

Based on the research report Monitoring the Impact of the Affordable Care Act on Employers by Blavin, Bowen, Blumberg, Buettgens, Gadsden, Rifkin, (2014) It was stated that “employer based coverage premiums became higher during 2002 and 2012 the rate exceeded NHEA growth.” Companies with less than “fifty

Employer based health insurance has received much criticism and its existence is in jeopardy as the Affordable Care Act (ACA) changes the healthcare industry. Penalties enacted by the ACA may cause businesses to reevaluate their standing on providing insurance coverage. However, evidence shown by Klein (2013) and Radnofsy (2012) give way to thinking that large business may not change their policies on providing insurance coverage. Moore (2013) and Pear (2010) show how small to mid-sized businesses may be influenced to drop the benefit, as it may not be in their economic interest. However, this is the area that needs assistance because they are the ones suffering from the insurance gap. The Census Bureau (2013) and Garfield, Damico, Stephens & Rouhani (2014) provide reports of how lower-income families and employees of small businesses very often find themselves without access to healthcare. Discussed are the advantages and disadvantages of employer-based health insurance. Evaluating the current position of employer-base health insurance and the pros and cons to its implementation will help determine how necessary it is for the United States.

Many employees must designate a health plan through their employer. These days, as HMOs (health maintenance organizations) and managed care plans continue to proliferate, that means a choice between bad and worse. As employees line up in the lunch-room for a process called open enrollment, they may be surprised to learn that managed care rates have gone up — again. The mirage that managed care is cheaper care is finally fading. And, for the first time in years, employees may also have the promise of free choice in medicine in the form of a new method of financing health care. Consumers are already aware of horror stories involving HMOs, but cheap rates persuaded many that managed care is less expensive. Recent

The higher cost of affordable Health care is also eroding the ease with which to afford other insurance that covers about 30 percent of Medicare enrollees ‘expenses. In 2005, about 89 percent of beneficiaries obtained such additional coverage, including through former employers (33 percent), medical policies (25 percent), Medicare advantage plans (13 percent), Medicaid (16 percent), or other programs (1 percent) (MedPAC). These supplemental insurance programs were all very helpful at the onset, but with the passage of time and as health care costs continued to rise, employers are finding it difficult to support these programs and as a consequence, a greater number of these employers are either reducing the benefit or eliminating these benefits especially those that affects their retirees thereby increasing the cost of these supplemental insurances.

Chapter conclusion: Benefits for employees are very important for companies. Benefits for employees include various insurance plans, paid vacation days, paid sick leave, paid days off, etc. Different companies need to establish different benefit plans based on their company conditions. In brief, benefit in one of the bridge between employers and employees.

Employee benefits are a tool used by businesses to attract potential applicants, improve employee satisfaction, reduce turnover and maintain competition. Benefits that most employers offer include, but are not limited to, medical and dental coverage, time away from work, retirement, and additional assistance during life changing events. The majority of employers in the United States offer benefits to their employees and include an annual enrollment yearly to select benefits and make any needed changes.

Employee benefits expenses arising in respect of wages and salaries, non‑monetary benefits, leave entitlements and other types of entitlements are charged against profits on a net basis in their respective categories.

There is a spacious room for lemon in insurance field. The price for health insurance is not fixed, it varies based on the level of the need an applicant may require for the insurance. As in the case of elderly people over the age 65, it is well known that it is very difficult for them to get health insurance because of its high price as they certainly will need it more than other applicants. On the other hand, employees working in companies are offered health insurance as a part of the companies’ policies and regulations. This actually create more room for lemon in the insurance field and less chance for old people who need it more. This ended up with adverse selection by the insurance companies. (A.Akerlof, Aug