Question

Give an example of an Employer mandated approach, what are the pros and cons of this approach?

Answer 1

The employer must offer a health insurance policy to all his employees.

Only full time employees ( is that persons who work more than thirty hours per week ) will get the insurance coverage.

The insurance coverage give benefits to the employee and their children up to the age of 26years.

Their spouse will not get any insurance coverage.

The employer must offer a health insurance policy that must be affordable to the employees.

There may be many issues for the employees income problems, work related financial problems , loans etc.

so must consider those factors also.providing an affordable insurance policy is essential.

Employer mandated approach is used for insurance policy for employees

For example

If an employer have 1000 full time employees.

He may provide insurance coverage according to his wishes.

1. The employer must offer insurance coverage for all 1000 full time employees.

In this about 95% of the employees and their dependence get benefits.

2. The employer offers insurance coverage to 800 full time employees and their dependence.

The rest of the people's were avoided.

3. The employer offers insurance coverage to 500 full time employees who needs it .

The employer avoid the 500 employees who does not want the policy.

4. In this employer offers 950 full time employees insurance coverage.

But only 600 persons is getting the benefits.

The rest of the people's do not have any benefits.

The employer will get benefits and the people's will not get actual benefits.

The affordable care act helps the employees to get their benefits.

The pros :-

-- It covers more individuals.

The employees as well as dependence gets benefits.

--- The payment is taken from the salary .

So it is helpful for employees.

---The employer get benefits as more workers or less workers he only pay same amount.

--- It provides wellness to the employer.

- -More healthy people is included in policy.

It provides insurance coverage to healthy and avoids sick.

--- It provides a competitive job. The person will change the job for better needs. The policy lies as a burden for employees.

cons.

--- The policy is based on employer wishes.There is no choice for employees.

--- The tax is unequal for all employees.

---It is not based on the ethics.

--- The poor people's will target. so it is a burden for them.

---There is no change in the policy according to change of institutions.

--The tax expenditure is inefficient.

The employer mandated approach is used to provide insurance coverage for employees.

It is success some times only.