Summary: Which Of The Options That John And Liza Would Work Best For The Company
Small Business and Health Insurance
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1. What are the issues in this case?
The issues in this case are concerns over healthcare costs for employees and whether hiring a new worker will increase healthcare costs. Additionally the company must decide if they can afford to hire the new worker knowing his wife is ill.
2. Which of the options that John and Liza are discussing would work best for the company?
The best option for John and Liza would be to ask all employees to pay an increased portion of their health insurance, as costs are rising. While some employees may drop their insurance they will be making a choice to do so of their own free will. It is unfair to single out a new employee due to a spouse’s illness, particularly when the employer is …show more content…
Why is it harder for a small business to provide health insurance for its workers than a larger business?
It is more challenging for a small business to provide health insurance for employees for a few Reasons. First, the cost is higher for fewer employees than more. This is because risk is spread across all members enrolled in a health plan. The larger number of employees, the more diverse the group is expected to be, which means healthier members are sharing the risk with less healthy members.
Small businesses, on average, pay about 18 percent more for health insurance than their larger counterparts for the same group of services (NFIB, 2014). There is power in numbers and the ability for larger employers to spread risk with more employees gives them power to shop and compare rates among companies who will compete for their business.
8. What impact, if any, will the passage of the Affordable Care Act have on John, Liza, and other small business owners? Provide a rationale for your
Student’s Name
Instructor’s Name
Course Title
Date
1. What are the issues in this case?
The issues in this case are concerns over healthcare costs for employees and whether hiring a new worker will increase healthcare costs. Additionally the company must decide if they can afford to hire the new worker knowing his wife is ill.
2. Which of the options that John and Liza are discussing would work best for the company?
The best option for John and Liza would be to ask all employees to pay an increased portion of their health insurance, as costs are rising. While some employees may drop their insurance they will be making a choice to do so of their own free will. It is unfair to single out a new employee due to a spouse’s illness, particularly when the employer is …show more content…
Why is it harder for a small business to provide health insurance for its workers than a larger business?
It is more challenging for a small business to provide health insurance for employees for a few Reasons. First, the cost is higher for fewer employees than more. This is because risk is spread across all members enrolled in a health plan. The larger number of employees, the more diverse the group is expected to be, which means healthier members are sharing the risk with less healthy members.
Small businesses, on average, pay about 18 percent more for health insurance than their larger counterparts for the same group of services (NFIB, 2014). There is power in numbers and the ability for larger employers to spread risk with more employees gives them power to shop and compare rates among companies who will compete for their business.
8. What impact, if any, will the passage of the Affordable Care Act have on John, Liza, and other small business owners? Provide a rationale for your