What Is Meant by Mandated Benefit?
What is meant by the term mandated benefit? Describe government-mandated benefits. What are the advantages and disadvantages of each? A mandated benefit is a law that requires a health insurance policy or health plan to cover specific providers, procedures, benefits or people. Mandated benefits are controversial. Some view them as consumer protections that ensure access to important care, while others contend mandates are promoted by narrow special interests and add significant cost but marginal benefits.
For over 50 years, public policy has played a role in determining what benefits an employee receives. First, the government mandates certain benefits: social security, Medicare, unemployment insurance, and workers’ compensation. (Ivancevich, 2010) There are certain advantages and disadvantages to each benefit.
Social security benefits provide income to employees after retirement or in the event of permanent disability. It provides a definite safety net for all citizens, regardless of who they are or how much they earn. Originally, social security was designed to pay for itself, as those citizens presently in the workforce would pay for those no longer in the workforce due to retirement. This equation has proven unreliable, as the number of workers in the workforce have begun to become outnumbered by those who are retired.
Medicare is a national social insurance program, administered by the U.S. federal government that guarantees access to health insurance for Americans aged 65 and older and younger people with disabilities. Monthly payments are either free or a low payment and are normally deducted from a person's social security check. Most individuals who were employed do not pay for long term care. The major disadvantage in the Medicare Benefit Package is the rising number of individuals 65 years of age and older. This group of people is increasing more rapidly than the working population who are paying into the plan.
Unemployment Insurance Program
For over 50 years, public policy has played a role in determining what benefits an employee receives. First, the government mandates certain benefits: social security, Medicare, unemployment insurance, and workers’ compensation. (Ivancevich, 2010) There are certain advantages and disadvantages to each benefit.
Social security benefits provide income to employees after retirement or in the event of permanent disability. It provides a definite safety net for all citizens, regardless of who they are or how much they earn. Originally, social security was designed to pay for itself, as those citizens presently in the workforce would pay for those no longer in the workforce due to retirement. This equation has proven unreliable, as the number of workers in the workforce have begun to become outnumbered by those who are retired.
Medicare is a national social insurance program, administered by the U.S. federal government that guarantees access to health insurance for Americans aged 65 and older and younger people with disabilities. Monthly payments are either free or a low payment and are normally deducted from a person's social security check. Most individuals who were employed do not pay for long term care. The major disadvantage in the Medicare Benefit Package is the rising number of individuals 65 years of age and older. This group of people is increasing more rapidly than the working population who are paying into the plan.
Unemployment Insurance Program