Suppose you have been tasked with purchasing health insurance for your organization that has fifty (50) full-time employees.
Use the Internet or Strayer databases to research different types of health insurance.
Write a two to three (2-3) page paper in which you:
1. Suggest one (1) plan that you would use to purchase health insurance for your organization. Determine the extent to which employee lifestyle choices and health economics would factor in to your chosen plan. Provide a rationale for the response.
2. Analyze the implication of the Affordable Care Act on your decision to purchase insurance. Debate two (2) advantages and two (2) disadvantages of purchasing health insurance for your employees, as opposed to having your employees receive governmental insurance.
3. Use at least two (2) quality references. Note: Wikipedia and other Websites do not qualify as academic resources.
Your assignment must follow these formatting requirements:
• Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions.
• Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length.
Expert Answer and Explanation
Health Insurance and the Affordable Care Act
The choice of an insurance plan depends on whether one is looking for a family plan or an individual plan. The two types of health insurance plans include group health insurance and individual health insurance. The main factor that one needs to consider in choosing the insurance plan that is suited best for them is their income and the monthly cost of the specific insurance policy if the deductible will get met if the cost of the drugs for prescriptions that are needed for the treatment.
Some plans do not cover services that involve emergencies like blood work and x-rays. This paper seeks to suggest a plan for insurance that will be most suitable for an organization that has fifty employees that work on a full-time basis and the implications of the ACA on the insurance purchasing decision.
The plan that I will use in purchasing health insurance for the organization is the group insurance plan, which can get purchased by an employee or employer of the organization and are typically cheaper compared to purchasing coverage for each employee in the company. The group health insurance is usually at a cost that is lower because the risk of the insurer gets spread across a group of holders of the policy (Glied et al., 2020).
The insurance plan covers liability that is statutory for an employer for bodily injuries or death that may be suffered by the employee because of the accidents that arise out of and in the course of performing his employment duties in the organization.
A group insurance plan is the most effective for the employees as they will all be covered for the same amount of medical insurance and it will also be more affordable for the organization, unlike the individual health insurance plan which will be more expensive as it will be based on the individual needs of each employee. With the group insurance plan, the organization will have to pay equal premiums for every employee, and the injury type to be covered will be specified.
Health economics and the lifestyle choices of the employees factor into the plan I have chosen in the sense that the coverage gets limited to specific injuries. The employees will not have to have a different insurance plan for their healthcare needs as they will be covered as provided by the group plan. However, the plan does not cover for injuries sustained due to their own negligence or other events that take place outside the place of work. The plan covers what happens in the course of performing duties for the organization.
Affordable Care Act Implication
The Affordable Care Act has a significant implication on my decision to purchase insurance for the organization. The implication of the ACA on this decision is that the premium revenues for health insurers increased by 6.2%, including the enrolment made in groups of people (Siemons et al., 2017). The ACA makes a provision that an employer that does not provide coverage for its employees may face penalties. This ensures that employees at all levels of the organization have access to affordable care.
There are several advantages and disadvantages of purchasing insurance for health for one’s employees. The various advantages include using it as a way of rewarding and attracting talent, it boosts the morale and dedication of the employees to their work and shaping a company culture that is positive (Kumar et al., 2019). Providing health insurance for the employees helps keep them happy and healthy, showing that the employer cares about them.
Also, productivity gets enhanced when the employees are healthy as they will perform their duties efficiently. This is unlike letting them have governmental insurance with which they will be less motivated. Some of the disadvantages of purchasing health insurance for the employees include the fact that costs of healthcare have significantly increased over the years making it difficult for employers that are small to plan their finances as they find it to be an affair that is costly (Cooper & Gardner, 2016). If the employees get governmental insurance, the small businesses will not have to worry about the costs.
Providing health insurance is an essential part of every organization that seeks to achieve quality. If the employees do not have health insurance, they will end up having bad outcomes of health which can negatively affect the organization in terms of productivity. It is critical that every organization should ensure that the healthcare needs of their employees get met to ensure that they are able to achieve optimal outcomes. The numerous benefits that arise from providing employee health coverage outweigh the costs of group coverage for the organization.
Cooper, R. W., & Gardner, L. A. (2016). Extensive Changes and Major Challenges Encountered in Health Insurance Markets under the Affordable Care Act. Journal of Financial Service Professionals, 70(5). Retrieved from http://search.ebscohost.com/login.aspx?direct=true&profile=ehost&scope=site&authtype=crawler&jrnl=15371816&AN=117675169&h=HHBE6iENmp%2FtW4fvxb82oCVWGBBeYPwg2U5l51ZWA3Yt8QSYXNmAA9rek%2B02ieN38HjeQ7g2%2BuXQu5MtQ%2BMdgQ%3D%3D&crl=c
Glied, S. A., Collins, S. R., & Lin, S. (2020). Did The ACA Lower Americans’ Financial Barriers To Health Care? A review of evidence to determine whether the Affordable Care Act was effective in lowering cost barriers to health insurance coverage and health care. Health Affairs, 39(3), 379-386. Retrieved from https://www.healthaffairs.org/doi/abs/10.1377/hlthaff.2019.01448
Kumar, K., Mahmud, M., Nataraj, S., & Cho, Y. (2019). Employer and Employee Preferences for Worker Benefits: Evidence from a Matched Survey on the Bangladesh Informal Sector. Retrieved from https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3335275
Siemons, R., Lucia, L., & Jacobs, K. (2017). California’s Self-Employed and Small Business Employees Experienced Large Health Coverage Gains under ACA. Retrieved from https://laborcenter.berkeley.edu/small-business-self-employed-health-coverage-under-aca/
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Rules for offering health insurance to employees
The rules for offering health insurance to employees can vary depending on the country, state, and employer size. Here are some general guidelines:
- Employer size: In the United States, the Affordable Care Act (ACA) requires employers with 50 or more full-time equivalent employees to offer health insurance to their employees or face penalties. Smaller employers may offer health insurance as a voluntary benefit, but they are not required to do so.
- Eligibility requirements: Employers may have eligibility requirements for their health insurance plans, such as minimum hours worked or length of employment. These requirements must be applied consistently to all employees.
- Coverage options: Employers may offer a variety of health insurance coverage options, including different plan types, deductibles, and co-payments. Employers may also offer wellness programs to encourage healthy behaviors among their employees.
- Cost sharing: Employers and employees typically share the cost of health insurance premiums, although the amount may vary depending on the employer’s policies. The ACA limits the amount that employees can be required to contribute towards their health insurance premiums.
- Compliance with regulations: Employers must comply with all applicable regulations and laws related to health insurance, including the ACA, the Health Insurance Portability and Accountability Act (HIPAA), and any state-specific laws or regulations.
- Communication and education: Employers should provide clear and accurate information to employees about their health insurance options and benefits, including any costs or restrictions. Employers may also offer education and resources to help employees make informed decisions about their health and wellness.
It’s important for employers to understand the rules and regulations related to offering health insurance to their employees and to provide clear and transparent communication about their health insurance policies and benefits. This can help ensure that employees have access to affordable and comprehensive health insurance coverage.
Explain the difference between a premium and a deductible
A premium and a deductible are two different terms used in the context of health insurance.
- Premium: A premium is the amount of money an individual or employer pays to an insurance company to purchase a health insurance policy. This payment is typically made on a monthly basis, and the amount of the premium is based on several factors, including the level of coverage, the type of plan, the age of the insured person, and their overall health status. In other words, the premium is the cost of having health insurance.
- Deductible: A deductible is the amount of money an individual must pay out of pocket for covered healthcare services before their insurance company starts paying. For example, if an individual has a $1,000 deductible and they need to undergo a medical procedure that costs $5,000, they would need to pay the first $1,000 themselves, and the insurance company would pay the remaining $4,000 (assuming the procedure is covered by their plan). The deductible resets each year, and the amount can vary depending on the plan.
In summary, a premium is the regular cost paid to have health insurance, while a deductible is the amount that an individual must pay out of pocket for covered healthcare services before their insurance kicks in.
Here is a table outlining the main differences between a premium and a deductible:
|Definition||The amount paid to purchase health insurance coverage||The amount an individual must pay out of pocket for covered healthcare services before insurance kicks in|
|Payment frequency||Typically paid on a monthly basis||Paid when healthcare services are received and the deductible applies|
|Cost||Based on several factors, such as level of coverage, type of plan, age, and health status||Typically a set amount determined by the insurance plan|
|Coverage||Does not affect the amount of coverage received||Determines the amount an individual must pay before insurance starts paying|
|Yearly reset||N/A||Yes, the deductible typically resets each year|
|Example||$500 per month paid for a health insurance plan||$1,000 deductible on the health insurance plan. If a medical procedure costs $5,000, the individual pays the first $1,000 and the insurance company pays the remaining $4,000 (assuming it’s covered by the plan).|
Can doctors look up your insurance?
Yes, doctors can typically look up your insurance information using your name, date of birth, and insurance ID number. They can use this information to verify your coverage, check your benefits, and determine if you have any out-of-pocket expenses. However, it’s always a good idea to bring your insurance card with you to your appointment to ensure that your information is accurate and up-to-date.
How do I know if i have health insurance through my employer?
The best way to know if you have health insurance through your employer is to ask your HR representative or employer directly. They can provide you with information on the health insurance plan options available to you, including details such as coverage, deductibles, copays, and premiums.
If you are unsure who to contact or do not have an HR department, you can also check your employee benefits package, which should outline the health insurance options provided by your employer. This information can usually be found in the employee handbook or on the company’s intranet site.
You can also check your pay stub or W-2 form to see if there are any deductions for health insurance premiums. If there are deductions, this likely means that you have health insurance through your employer.
If you still have trouble determining whether you have health insurance through your employer, you can also check with your insurance provider directly by calling the customer service number listed on your insurance card.
How to check if your health insurance is active online
The process for checking if your health insurance is active online may vary depending on your insurance provider. However, here are some general steps you can follow:
- Visit your insurance provider’s website. This is typically listed on your insurance card or in the materials you received when you enrolled in the plan.
- Look for a member portal or login section. This is where you can access your account and view your coverage information.
- Enter your login credentials. This may include your member ID, email address, or a username and password that you created when you signed up.
- Once you are logged in, look for a section that displays your coverage details. This should include information such as your plan type, deductible, copays, and coinsurance.
- Verify that your coverage is active. You should be able to see the effective date of your coverage and any upcoming premium payments.
If you are having trouble accessing your account or finding the information you need, you can also try contacting your insurance provider’s customer service department. They can help you verify if your coverage is active and answer any questions you may have about your policy.