How are companies providing healthcare benefits for their employees compared to
a decade ago?
Individual Final Research Project:
Are companies still providing healthcare benefits for their employees compared to
a decade ago?
GB520-14M Strategic Human Resource Management
October 12, 2012
Healthcare Benefits: A Decade of Evolution
This research project will discuss American companies current healthcare benefits package offered in today's global businesses compared to a decade ago. The evolution of healthcare agencies and the competition of managed care organizations for working class have escalated and at the same time, the number of uninsured Americans continues to rise. Innovations in healthcare market are continuing to improve and break thru with new technology despite the high-cost of premiums and the affordability. American's working class healthcare benefits now on average costs $7500 per person, up from $2800 a decade ago. In 1990, 14.1% if Americans are without insurance compared to today the increase to 16.3% (Chideya, 2012). This increase is partly due to the economy, businesses merging or closing, corporations moving to other countries and employers not paying allocating cost for employee coverage. Approximately 30 million Americans are uninsured today and this number will rise rapidly over the next decade due to overall healthcare costs. Insurance companies have the option to reject or deny coverage due to gender bias, pre-existing conditions, and health disparities. Health Maintenance Organizations (HMO) began to become popular in the late 1990's and were very influential offering options for managed care programs to companies. The managed care organization has transformed the health insurance industry from traditional to fee-for-service. During 1995, the healthcare industry expanded and was ultimately profitable relying on cost trends that came in below expectations and the premiums were still set.
This paper will acknowledge the competitive market that pushed healthcare to skyrocket as it transformed the industry.
Policies The process to reform healthcare has been ongoing for decades since President Roosevelt ask Congress for "economic bill to rights" to include adequate healthcare. Thus far, healthcare reform is not workable in social equality. The Center for Medicare & Medicare formed in 2001 to make certain effective, up-to-date healthcare coverage made available while encouraging quality care for recipients. The Health Legislation covered Medicare Prescription Drug, Improvement and Modernization Act signed in 2003 promised to deliver but under-estimated cost, and over promised deliverables filled with contentious dishonesty. Consumers entered into the new HMO industry spurred by the belief that this would be the last option. Purchasing a smaller plan and increasing it through premiums low in relation to cost. The Medicare plan market rapidly grew and considered the smartest segment at that time. Payment from Medicare preferred to cost in the traditional program which were increasing a higher rate than the cost for managed care plans. Transition The transformation of the health insurance industry was change by managed care objectives. Companies that offered managed care to employee were local and regional HMOs. Traditional insurers not well versed with this practice. The U.S. HealthCare purchased by Aetna and the executives given charge of the operations were absolute. United Healthcare, started as a HMO acquired a traditional insurers to expand the territory. Blue Cross and Blue Shield (BCBS), which considered larger lost market share to other insurers but they continue to be control insurers in many other markets.
Administrative cost implemented begins to drive cost,