Employee Health Benefits – What You Must Know
Countries like the United States of America, Canada, Australia and the United Kingdom are amongst the richest in the world. So what are the reasons that make make the people living in these countries wealthier than those in other nations? The answer is simple. The economies of these countries are the main support that has helped them achieve such high living standards. The economic transformation was brought about by the efficiency and the productivity of the labouring classes. It is important to remember that labouring classes or employees can only be efficient once they are satisfied by the organisation they are working for. The employee Health Benefits is a part of this will to ensure complete satisfaction of the working classes.
In plain words, any plan on employee Health Benefits is set as well as maintained by either the employer or the organisation employing the workers. In cases the employee benefit plan is devised by the recruiting organisation, the welfare of the workers is looked after by a Union board or the company itself. These benefits are provided the workers or their dependents in the form of health insurance.
The health plans devised for the benefits of the employee classes can be broadly divided into the following-
Employee health insurance– Employee health insurance programs should be incorporated in the plans followed by the companies all over the globe. Safe and secure working conditions are one of the chief concerns for different business organisations. Having these polices secures the lives of their employees, thereby making the working conditions better for them.
In case of manufacturing industries many mishaps may take place in the course of production. Mostly the machines that are put to use for production purposes may often injure the workers operating it. In case of such accidents workers can get the benefits of the health insurance schemes maintained by the mother concern.
· Employer group health insurance- Health insurance for employers comes in different shapes and sizes. Employer group health insurance is one of them that have surfaced as one of the most popular ones in the circuit. These insure the life and medical expenses of communities of workers engaged in the process of production. These kind of insurance programs are generally mediated by the employing organisation.
· Federal employees health insurance- Federal employees health insurance is meant for the permanent full time civil employees. Only these people serving the state are entitled to these types of benefit plans. Most of the federal insurance plans are managed by the Union bodies and looks to cover all requirements of the employees. · Retirement plans- Retirement benefit plan is the key to attain social and financial security after retirement. The period after retirement is particularly tough as there is a lack of steady income. Thus the retirement benefit plans provided by employing organisations can support their employees, once they have retired.
Medicare and private health insurance have been equally successful (or unsuccessful) in controlling health care costs over 20 to 30 years. Federal Employees Health Benefits Program (FEHB) has experienced some adverse risk selection; that is, sicker people have joined certain plans causing those premiums to spiral upward; benefits are not standardized; even sophisticated federal employees have difficulty understanding the choices available. Medicare currently pays only 57 percent of the total health expenses of beneficiaries. Any further reductions in that share will be felt by most beneficiaries, but especially by the sicker and more disabled individuals who are heavy users of health services.
Federal employees experience about a $200 annual compensation gap relative to those in the private sector, but it is partly explained by advantage in purchasing power. In contrast, state and local governments make higher payments toward health insurance than private-sector employers do. Federal Employee Health Benefits form an integral part of the employee welfare programs, taken care of by employers. It offers certain benefits to the employees, once they have successfully completed the probation period and have been confirmed as full-time employees.
Medicaid expenditures were fairly constant over the 1970s and 1980s, and did not begin to rise until more generous eligibility requirements were implemented in the 1990s. By 2001, Medicare and Medicaid together accounted for 32 percent of all health care expenditures in the U.S. Medicaid is a jointly funded, Federal-State health insurance program for certain low-income and needy people. It covers approximately 36 million individuals including children, the aged, blind, and/or disabled, and people who are eligible to receive federally assisted income maintenance payments. Medicare rules provide that the employer plan is the primary payer based on the individuals “current employment” status. If an individual is not currently employed, and is retired, the primary payer for a retired employee is Medicare.