Question

Using what you’ve read and viewed please reflect on the New York Times article, Harvard Ideas on Health Care Hit Home, Hard (Jan. 5, 2015). How should the burden of health costs be shared by employers and employees? If employees have to bear more of the cost, will they skimp on medically necessary care, curtail the use of less valuable services or both? Is the cost-sharing program instituted at Harvard, in effect, “a pay cut” designed to “come at …the moment you are sick…” Or is it intended as a behavior “designed to reduce overall spending.” Thinking more broadly, should our healthcare insurance be delivered by our employers? Or is there a better way we could purchase healthcare insurance?

Answer 1

Answer:- Reviewing the Article by New York times regarding Harvard health care policy, generally speaking Health insurance plans sponsored by employers are cheaper than taking individual health insurances . Also here employer splits the premium to be paid for the insurance with us (as employees).

Secondly we do not have to choose the plan options available with the insurance companies all this work is done by employers themselves.

Premium contributions by employers are not subject to federal taxes and employee’s contribution can be made pre-tax resulting in lowering employee’s taxable income.

An individual employee can also go for taking healthcare insurance himself but that will be costly for him with lesser benefits and more premium to be paid.

Hence it is advisable to go for workplace healthcare plans as they are affordable and with more schemes and benefits for the employees belonging to all cadres.