How to create a better employee medical plan

Article Abstract:

A good employee medical plan should be simple; it should minimize administrative costs in order to maximize plan benefits, and the amount of benefits received should not be determined by eligibility dates alone. The plan's funding should be appropriate to the type of coverage provided, and the employees should feel that they share in the success of the plan. Many existing health care plans violate at least one of these principles; the benefits from overlapping coverage are not well-coordinated, employees have no contractual incentives to keep medical costs down, and many plans do not take into account the different health care needs of active and retired employees. An alternative plan is proposed which reimburses employees for 85 percent of expenses after a $500 deductible, gives employees the option of selecting their own HMO, and gives refunds for unused employee contributions in return for reduced coverage of dependents.

Management, Human resource management, Occupational health services

---

Containing health care costs

Article Abstract:

Health care costs have risen to approximately 11 percent of the gross national product and comprise about 10 percent of the average employer's payroll. Effectively redesigning a health care benefits plan requires consideration of cost-containment options, and is a project best guided by a team that includes the chief financial officer, human resources director, and chief legal officer. Many redesigned plans give employees incentives to become more prudent health care buyers: although total coverage may be decreased, the offer of financial rewards along with a broader choice of coverage may make the redesigned plan more attractive than one that offers first-dollar coverage. Specific strategies taken by companies such as Quaker Oats Co., Clairson International Corp., and Quill Corporation are outlined.

Health aspects, Quaker Oats Co., OAT, Quill Corp., Clairson International Corp.

---

Strategic planning controls benefit costs

Article Abstract:

It has been estimated that American companies spend 20 to 30 percent of their total employee benefit outlays on voluntary benefits. Methods for reducing these operational costs are detailed, including the following steps: eliminating overlapping coverage, minimizing funding expenses, reducing benefits that are not used, discouraging employees from using high-cost medical care and educating employees about their benefits packages. Strategic planning in the benefits area is also discussed, and eight steps for carrying out a strategic plan are detailed.

Employee benefits

Similar abstracts:

• Abstracts: How To Evaluate a Telemarketing Managerial Candidate. Standards & Good Taste as Telemarketing Tools
• Abstracts: How to Create a Sales Smart Customer Service Department. Lead Qualification: The Proven Path to Reducing Sales Costs While Improving Results
• Abstracts: Auction rate preferred: an emerging favorite of tax-conscious corporate investors. Convertible Adjustable Preferred Stock Looms as Major Financing Method
• Abstracts: Incorporation: a way round the tax traps. The effect of social change in the U.K. Incorporation: Muddled Rules Ripe for Change
• Abstracts: Another chance for the marketing concept? Large-site prices still declining, survey finds. How Multivariate Analysis Can Enrich Survey Findings

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.