Restructuring a Healthcare Plan

Restructuring a Healthcare Plan

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Restructuring a Healthcare Plan

Many companies restructure a healthcare plan as this can produce real financial returns. Increasing healthcare costs are carried by reducing wages. Health care costs have grown exponentially over the years, while wages and salaries at times have lessened. By restructuring a healthcare plan, employers are able to provide fairness to their employees, along with competitiveness and positive behaviors from the employees as well.

Employers that offer certain benefits to their employees can lead to the employees feeling appreciated, thus making them happier and more productive in the workplace. When employees are more productive, there becomes a greater chance of financial returns increasing from this. When the returns are increasing, the employer is able to provide more benefits, such as competitive wages, raises, and bonuses to their employees. When an employer is able to offer these additional benefits, then there is a greater chance of the employees continuing with their productivity rate, as they want to continue receiving these additional benefits. If these benefits were not offered to the employees, then their productivity would reduce, thus making it more difficult for the company to maintain good healthcare benefits.

Employers that make contributions to retirement plans offered to employees can be used as a tax incentive. One of the advantages they are able to take advantage of is the tax favored benefit. This allows both the employees and the employer to deposit pretax dollars into the account. With this benefit, the employers contributions to the account are tax deductible when doing their federal income taxes. Having benefits for the employees allows the employer to deduct costs of providing such benefits for employees. The tax deduction is useful, as this helps the employer with offsetting the costs, thus making it easier to provide these benefits to the employees. This is a benefit for both the employee and the employer because the employee is able to receive health benefits, while the employer is able to get tax credits per employee. By having all of these benefits available to the employer, it provides the opportunity for financial returns. In the aspect of boosting the productivity for the employer, having these tax incentives increases the opportunity for employees since their employer provides benefits like this for them.

As you can see, restructuring a healthcare plan not only benefits the employer, but it also benefits the employees. Having an employer that provides benefits such as these, causes employees to be more productive and remain loyal to the company. As employee productivity increases, there then becomes an increase in financial returns. To increase productivity amongst employees, employers can offer competitive wages, along with raises and bonuses, as this can make the employees happier with their company. The employer is benefited in the way of tax incentives that they can receive from offering these benefits to the employees. This can increase the deductions that are taxable, which in turn will also increase the financial returns.