Healthcare Insurance as a Challenging Task for Employers

The provision of insurance cover is an important role of the employers of large companies. It is a legal requirement for companies to provide health coverage to their employees to avoid attracting penalties. The managers of organizations with more than fifty full-time or part-time employees should provide insurance cover to about 95 percent of them to avoid hefty fines according to the requirements of the Affordable Care Act. Small-scale enterprises are not obliged to provide insurance cover to their employees.

Providing insurance cover to employees is a challenging task due to the differences in the workers’ wages. The organization can choose the most effective insurance for their employees to promote retention to the firm, avoid healthcare reform assessments, gain tax advantages and enhance the wellness of the employees. An example of a strategy an institution can employ to provide insurance for its employees is the group insurance plan. In this strategy, the employers buy an insurance option for their employees. The workers are required to contribute some amount of cash from their salaries to cater to these plans. The insurance plan will benefit the individuals and their family members.

Additionally, the employers should choose the group health insurance cover as it has bargaining power. The employer achieves cheaper and affordable options in providing healthcare cover for many employees. An alternative insurance strategy to group insurance is the health reimbursement arrangement. In this plan, workers acquire an effective insurance policy under their pocket costs. The firm then reimburses the insurance policy through additional allowances to the employees. This strategy is effective as individuals choose the plan that provides the best medical cover according to their individual preferences and capabilities.

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