HA 545 UNIT 2 ASSIGNMENT Case Study Reflection

Employers are not required by law to offer health insurance; however, the president’s proposal is appropriate. Employers who offer healthcare insurance attract better talent and cultivate more loyalty and productivity among their staff. Besides, offering healthcare insurance should be mandatory because buying a healthcare cover is a much cheaper option for the poor than spending all their savings on treatment (“5 Reasons Why The Government Should Make Health Insurance Mandatory,” n.d.) . In addition, this will mandatory healthcare will help cap the rising cost of healthcare and improve access to good-quality healthcare services. It may have some disadvantages, but has more benefits to both the employers and the workers(“Pro and Cons: Offering Employee Benefits – FindLaw,” n.d.).

The benefits of the proposal are;

Health insurance coverage helps attract and retain quality employees

Business get tax advantage of deducting plan contribution such as health insurance and life insurance

Healthcare insurance help cap the increasing insurance cost

It is much cheaper for the poor compared to spending on treatment

Offering health insurance helps decrease absenteeism and improve employee health and morale

The disadvantages are;

The cost of healthcare insurance has steadily risen, making it less and less affordable to employers and workers thus making financial planning difficult from year to year.

 Providing healthcare insurance costs more for small employers than for large ones, both in terms of higher prices because of lesser buying power, and due to relatively higher cost of administration.

 Offering healthcare insurance creates concerns regarding legal compliance, which in turn causes a company to incur legal fees.

  Mistakes made in offering healthcare insurance can lead to costly lawsuits, or to regulatory fines.


5 Reasons Why The Government Should Make Health Insurance Mandatory. (n.d.). Retrieved from http://www.huffingtonpost.in/yashish-dahiya/5-reasons-why-the-government-should-make-health-insurance-mandat_a_22014605/

Pro and Cons: Offering Employee Benefits – FindLaw. (n.d.). Retrieved from http://smallbusiness.findlaw.com/employment-law-and-human-resources/pro-and-cons-offering-employee-benefits.html