Term paper on Medical Insurance Example | Topics and Well Written Essays - 750 words

On Medical policy - Term Paper ExampleWith regard to business, employers result be required to cover all their employees condescension their medical condition. Failure to cover its employees would tantamount to paying fines which the law will impose on the company. This is of the essence(p) to mention because this is the new context that businesses will be operating in terms of providing wellness insurance policy to their employees. If the law will be strictly adhered to, businesses will have to cover all of its employees including those who were previously uninsured and those who have pre-exisitng conditions. That would mean an added cost in terms of paying premiums as employees who were not uninsurable has to be insured at present. To be able to control the seemingly rising insurance cost, employers ad selected several slipway to be able to save on cost. One of the weft being considered by the big companies much(prenominal) as AT&T and Caterpillar, is to stop providing w ellness coverage for their employers and pay the fines that the government will levy. They will instead give raise to their employees in lieue of non-coverage and still save money (Colvin, 2012). Big companies are considering this option because the forced coverage of the new law on health insurance on all of its employees including those who were previously uninsurable would mean huge addition of cost due to the scale of its employees. Such, they deemed it more cost efficient to stop insurance coverage, effective pay the fine and give employees a raise as a replacement of health insurance coverage. Another option that employers are now implementing is to self-insure their employees. It meant that the employers themselves would now be creditworthy for covering the health insurance of their employees and would pay their claims directly rather than going through the conventional health insurance policies (whose cost has gone up with the implementation of Obamacare). The self-insured employer choses and designs their own plan and hire a trinity party administrator to manage the plan. And employers who cannot afford huge claims purchase stop-losss insurance that would cover the claim just in case they reach a certain level (Sammer, 2011). This became an option because the new law on health insurance removed the annual and lifetime payment caps that made stop-loss coverage a near(a) alternative among employers. These cost saving device of employers may also be challenged by employees who would actually opt in with the coverage of the new health insurance law especially parents who have children under 27 years old. Under the law, employees who will be covered by the insurance policy of their employers can now include their children under the age of 27 in their insurance coverage with Obamas new health care law. This component of the new law will be very advantageous to employees who has/have sallow child/children because the cost incurred in the health care of their children can now be shouldered by their present insurance when the new health care law. Employers who will attempt to stop health insurance coverage of their employees are almost certain to have conflict with them because that would mean depriving employees who are