Health Insurance Planning Case Analysis Essay

Nigel Duncan, Director of Human Resources for Classic Architects, sees a need to review the company’s health insurance for the company’s financial benefit. Mr. Duncan has high hopes of turning over the company’s economic downfall by cutting some of the company’s biggest expenses. In particular, he would like to focus on the direction of the health insurance plan before the company’s annual open-enrollment period. As of now, Classic Architects a higher percentage of the insurance premiums for employees, which is putting the company in a financial bind. Mr. Duncan is proposing that the company requires the employees to pay a higher deductible to hopefully lower the cost of the company’s overall premium.
After Mr. Duncan research, he discovered that a large number of employees are visiting the emergency room out of convenience. Employees may go to the emergency room from a minor illness instead of waiting to go to their physician the next day. Majority of the reasons why people were going to the emergency room is because they did not have to pay a large amount up front, which only looks bad on the company. The company’s image appears to not be educating their employees on the importance of taking care of themselves. In order to make the shift simple for everyone, Mr. Duncan is proposing that the company shifts from a flexible saving
The advantages are the company will save more money and will not face so many financial downfalls because of high insurance premiums. The employee would be more responsible about going to the emergency room and take the proper steps to see their doctor. The company will not be full responsible for paying the high premiums. The disadvantages will be that the employees will be upset with the new changes and may not agree to the terms. The company could lose some potential new employees to the competition if they are offering better