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Health Insurance Costs Versus Privacy

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Health Insurance Costs Versus Privacy
Lucely Cruz Figueroa University of Phoenix HRM 546 Human Resource Law Health Insurance Costs Versus Privacy Prof. Nelson Cardona-Muniz Health Insurance Costs Versus Privacy

Computers by Design (CBD) is a small computer systems sales and service business located in the Midwest. The owners of CBD, Abigail, Megan, and Andy, are concerned about rising health care insurance costs. Abigail has researched the issue, and has learned that CBD can better control insurance costs by only hiring people who are less likely to make claims—the healthy, the fit, and the non-addicted. She has proposed to the other owners a two-step program.

First, CBD would conduct pre-employment health screenings, including voluntary genetic testing. It would not hire anyone who smokes or uses drugs, has any genetically linked propensity for an expensive disease, or is not physically fit.

The second step would be to give every employee a 12-month notice to stop using tobacco and nonprescription drugs and to submit to random, monthly testing. Employees would also be placed on a fitness and weight control plan. Professional assistance would be available at no cost to help them stop using tobacco and drugs and to help them meet weight and fitness targets. Employees who meet the goals would be allowed to stay with CBD. Those who refuse would be given a severance package and discharged.

What are the legal issues involved here? Which of the measures proposed by Abigail are legal, and which are not? Explain the legal issues involved and reference specific pages from your readings to support your conclusions.

Con respecto a información médica específicamente, las decisiones del patrono no sólo se rigen por el “Americans With Disabilities Act” sino también restringidas por la Health Insurance Portability y Accountability Act (HIPAA) (Pub. L. 104-191). HIPAA estipula que los empleadores no pueden utilizar "información de salud protegida" en la toma de



References: section. I have obtained written permission or have included a release from the copyright holder for any trademarked material, logos, images from the Internet, or other sources. I further agree that my name typed on the line below is intended to have, and shall have, the same validity as my handwritten signature.   Student 's signature (name typed here is equivalent to a signature):   Lucely Cruz Figueroa

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