Question

Review the discussion question and answer below. Do you agree with the answer? why or why not? Give your opinion.

Discussion Question:

1. Suppose an employer gives employees an insurance discount based on number of hours of physical fitness activities. Who benefits from the program? Who is harmed? Is this ethical?

2. Suppose an employer charges all employees the same premium, regardless of their health habits, Who benefits? Who is harmed? Is this ethical?

Answer:

1) In such a scenario, all the concerned parties, i.e the employer , insurance company and the employees will benefit from the program. When the employee is encouraged to participate in physical activities, it would help in improving the health and wellness of the employee. Also, the employee would receive discounts on their insurance program. The improvement in health will lead to an increase in the productivity of the employee and make him more efficient at the workplace. This could be due to the fact that a healthy body leads to a healthy mind, which in turn will lead to fewer episodes of absenteeism from workplace on account of ill health.

These benefits due to a better health benefit both the employee and the employer. Also, the insurance company will be benefit as they would have lesser insurance claims to settle on account of ill health.

However, if the organization imposes extreme methods to encourage physical fitness or expects the employees to follow rigorous physical activities in order to claim the discounts then it could prove to be detrimental to both the employer and the employee. It is a known fact that people tend to dislike imposition of extreme forms of physical activities. Under such a scenario, employees would feel burdened with the program and will lose enthusiasm towards the workplace. The employer will also be at loss. Employer could lose talented employees and also the organization will have to incur monetary losses in case the program fails.

The program can be ethical if the limits and the conditions to qualify for discounts, the kind of physical activity expected, the amount of physical activity expected etc is discussed and implemented after consultation with the employees. If the physical fitness activities are left to the discretion of the employees without much interference from the organization, then it may be ethical.

However, if the organization is the sole planner of the entire program and imposes difficult and strenuous physical activities to be completed or threatens the employees with fines or other punishments for refusing to participate in the program then it can be unethical and harmful to both the employer and the employee.

2)  When an employer charges same premium regardless of health habits it is beneficial to the employer and employee. It provides full premium to the employee and any sudden health problems can also be covered as health will not be the same always. This also makes everyone in the company equal and gives equal rights and benefits to everyone which is also ethical.

Answer 1

Answer 1.

Yes, the given answer is correct as per my understanding.

Health is one of the important factors for personal development and improves productivity at the workplace. A healthy and fit employee will perform better and give his 100% to the organization's development. Regular physical activities have a lot of health advantages such as protection against major diseases, improvement in mental & physical health, and quality of life at personal and organization levels. Lack of physical activities or an unhealthy lifestyle means higher health care costs, improper work balance.

So when the insurance premium is associated with hour spend on physical fitness activities, will affect positively Employer, Employee, and the insurance company. As we know that the insurance premium is proportionately related to consumer health. More healthy people will tend to have a lesser insurance premium.

When a consumer is healthy and has a record of less spending on healthcare, the insurance premium will be lesser. In the same way, an employer can provide insurance premium discounts based on employees' time spent on physical activities. It will motivate the employee to spend more time on physical activities, have good food, and have a healthy lifestyle. It is a win-win situation for both employer and employee and due to lesser insurance claims, the insurance company would be benefited.

A healthy employee will have more productive work with less stress, less illness in the workplace. The employee will have fewer workplace injuries and he will be every time. He could manage his personal and professional life easily so less absenteeism will benefit both employee and employer.

When it comes to ethical aspects of this situation, it is completely ethical behavior by the employer. It is a kind of motivation that is the same as other compensation benefits. As the monetary benefit is one of the best motivators that improve the productivity of the employee. It should be implemented the same as other compensation benefits are implemented in the organization means link to the performance. So more performed employees will get more benefits. The employer should not force the employee to more physical activities that he is not able to do due to the employee's health condition. The employee should be the main decision-maker in the process.

Because many times the employee could have some illness and other health issues that he does not want to disclose at the wellness center and could have to disclose some sensitive information about his health, at that time when wellness programs are forcefully implemented, there could have ethical issues in this process. When it comes to disabled people, this scheme will not work and the employer cannot face the employees to have insurance premiums with regards to physical activities.

Answer 2.

When the insurance premiums are charged at the same rate regardless of health issues, habits, and lifestyle, employees will be benefited, but sometimes certain employees that are doing more physical activities will have issues with unhealthy people because this situation will demotivate them.

Those employees will be benefited who have major health issues and spending huge money on healthcare every year as they will have the same insurance premiums regardless of health and lifestyle.

In this situation, the employer will not get any benefits as there is no advantage for the employer. The employer will not be able to motivate employees for their health. A healthy employee will have so many benefits for the organization. that we have discussed in the first question.

The insurance company will have no benefit and no loss benefit as it will get the same insurance premium, but it could have more insurance claims because there are employees who are not healthy and spending more money on healthcare every year. The insurance company could lose in this situation.

Yes, this is an ethical situation as it promotes equal opportunities and equal benefits to all employees. The employer is not promoting discrimination in the workplace between healthy and unhealthy employees. There is no discrimination in terms of sex, age, disability, etc by the employer.