Tuesday, May 7, 2019
Types of Health Insurance Plans Case Study Example | Topics and Well Written Essays - 750 words
Types of Health insurance policy Plans - Case Study ExampleOffering a health insurance plan helps in retaining and attracting bore workers. Accordingly, this results in a higher productivity and customer satisfaction. Additionally, a health insurance makes employee accept get around benefits instead of a higher salary. Consequently, this reduces the physical compositional expenditure and provides more financial resources for development (Morrisey,2008). Furthermore, a health benefit decreases absenteeism and improves the workers health and morale. As a result, the workers are more willing to offer better service that assist the firm in realizing its objectives.On the other hand, such a benefit is expensive for the organization, considering its thin size and sources of finance. Additionally, the administrative cost of designing and implementing such a plan is very expensive for the short letter (Morrisey,2008). Furthermore, the current cost of insurance policies is increasing, making it less viable and an expensive endeavor for the organization. For this reason, any mistakes make in the benefit plans can lead the team to serious legal problems that might lead to pricy charges or regulatory fines.There are different types of health insurance plans designed to meet particular needs of an employee or employees. Specifically, the most common in the market is embedded in a profits of providers in order to benefit from the economies of scale. Some of the available plans include the exclusive provider organization, health aid organization, a point of service, and the preferred provider organization (Morrisey,2008). The most desirable and cost-effective plan for the organization is the Preferred Provider Organization. Specifically, this is beca intake the method is cost effective as it allows members of the network to pay less when the employees use services from the providers within the network.The Preferred Provider Organization is network specific, and the employees do not pay for the plan.