Question

Describe the considerations when developing medical benefits.

Answer 1

Considerations When Developing Medical Benefits

Employers and companies of different sizes (including big, small and medium) provide medical benefits to employees for maintaining a healthy and productive workforce, among other reasons. Employers in sectors including public and private sectors are largely dependent on these benefits, and some provisions and benefits may also apply to their family members. According to IRS (Internal Revenue Service), there is a limit to the maximum contribution. The limit may also change following the 401 (k). The greater the contribution, the larger are the benefits and hence employees should be provided relevant information and encouraged to join the health plans.

The benefits reduce the medical expenditures of employees manifold in a range of areas including prenatal care, health check-ups, emergency care, and even treatments and prescription drugs. Below are some considerations for developing medical benefits for employees.

Health insurance- if the employee's health is not supported by any public or government health policy, the company should include health insurance benefits for the employees. The deductible plans may be applied so that the employees can affordably pay for the health services. For health insurance, employees may get options including:

1. HMO or Health Maintenance Organization- where doctors connect to the specific insurance company.PPO or Preferred Provider Option-not as organized as HMO, this option may involve doctors that are not on the list of the insurance provider. While restrictions are lesser, the expenses increase.

Dental Insurance- employees may also be provided with an optional dental insurance plan. This is so because many employees rarely face dental issues, and would like to pay for the treatment through the “out of pocket” expenses. Dental benefits are also not mandatory, as per law. The dental covers can be funded by the employer, employee or both.

While some employees are bachelors, others would be having families. Hence, they should have insurance and other medical coverage option that apply to them and can back their monetary needs in times of distress. The insurance benefit providers may also provide different packages, at different levels or tiers, and the employee should decide what is more appropriate for him/her and it's family. Because employees also need to pay the premium for the health/dental insurance covers, their say is important. Employers should also see whether a government-funded medical benefits scheme is available and can apply to the employees, which substantially reduce healthcare costs.