Understanding Benefits
In various workplace settings, employees are entitled to various benefits. Some of them come as privileges while some are the rights and are outlined by the labor laws. Some of the employers use their benefits packages as bait to attract and maintain a proficient and skilled workforce (Deakin & Morris, 2012). However, some companies find it difficult to extend the benefits fully citing tight budgets all at the plight of unaware employees. However, not all of these benefits are mandated by law hence being considered as privileges.
It is of importance for every workman to understand their benefits and draw a line between the mandatory ones and those that could be offered as opportunities. However, this is not so with various employees who lack adequate information associated with labor laws. They therefore end up being oppressed without their knowledge. This is ironical since the key factor any job seeker considers when looking for a job is what packages come with it (Deakin & Morris, 2012).
One of the benefits offered to the employee is the unemployment insurance. This is a package that incorporates a worker to an insurance program which provides payments to them in case they lose their jobs. The insurance package is fully covered by the employer. However, the employee must be eligible for the same. Another important benefit is family and medical leave.
This is entrenched in the FMLA (Family and Medical Leave Act) (Deakin & Morris, 2012). It provides an employee who has met eligibility requirement with job protection after taking a leave for specific reasons. For instance, a maternity leave is offered for a period between four and eight weeks (Snell & Bohlander, 2015).
Other benefits entitled to workers are, workman compensation, sick pay, vacation, health care insurance and pension and retirement benefits. Pension and retirement are regulated by the tax laws. Workman’s compensation provides the employee with disability income and medical benefits. Holidays and vacations are provided for monotony-breaking and also for the employees to take time off and address personal issues that cannot be handled during the normal working session (Snell & Bohlander, 2015).
The cost of healthcare is increasing, and employees have to determine what is best for the employees while maintaining the company’s budget. Employers are giving employees choices to different type of benefit arrangements while sill exposing them to cost of providing health benefits and health care services the employees enjoys benefits such as specialized care, utilization of healthcare services, and improved health care expansion of health insurance coverage (Fronstin, 2012).
Health Maintenance Organization (HMO)
HMO offers its members with extensive medical services which are prepaid. An individual chooses a primary care physician within a network to coordinate care. Moreover, for a person to be attended by the primary care physician, referral is requiring besides an emergency. For one to receive healthcare, you have an obligation to follow your network, failure to which the health insurance does not cover (Fronstin, 2012). Provision of healthcare through the primary care physician helps in low healthcare cost for everyone.
Preferred Provider Organization (PPO)
PPO is a plan care of where an individual can access health care, inside or outside one’s network from any healthcare professional without necessarily without having been referred. By staying in your network, full coverage is assured, and less amount of money is incurred in case you use healthcare providers and one facility that belong to the same network.
However, if for health care received outside one’s network, minimal services are offered and the individual incurs more costs (Fronstin, 2012). In this type of plan, flexibility to be paramount regarding doctors specialists and hospitals. No primary care physician or referral is required for this type of project.
Point-of-Service Plan (POS)
This is a type of care program where a person is needed to select a personal care physician from a particular network provider; however, care can be sort from another network with reduced benefits. For a person to receive specialized care, one is not required to obtain a referral. Also, PPOs offers a wider network and is more flexible for individuals willing to pay more, though, with reduced benefits ( Robinson & Ginsburg, 2013).
This only applies to covered persons. This does not always apply since some specialists require one to be referred by a primary care physician. In the event a person seeks care outside the network, the in-network benefit will apply as long as a referral is authorized by aa primary care physician (Fronstin, 2012).
Health Reimbursement Arrangements (HRAs)
This type of account recompenses employees for specific medical services healthcare expenses. Employers set aside some money for their employees to refund any amount incurred during health care service provision. Contributions are only made by the Employer pay and pay only when expenses are incurred to the extent of contributions. When the employee leaves the company, the funds are left with the employer ( Robinson & Ginsburg, 2013).
Health Savings Accounts (HSAs)
It is a savings account used by individuals to pay immediate and prospective medical expenses. It is a requirement for one to be covered by a deductible health plan. The account can accumulate tax-deferred interest just as the retirement accounts (Fronstin, 2012). Money invested in this account is tax-free and can be withdrawn for non-medical purposes; however, a fee is incurred.
Employers are required to pay the total amount of money at the beginning of the year, whether expenses are incurred or not ( Robinson & Ginsburg, 2013). Contribution can be made by either an employer, an employee or a third party.in the event an employer leaves a company, the leave with the contribution. All the employees get the same amount of contribution made by the employer.
References
Deakin, S. F., & Morris, G. S. (2012). Labour law. Hart publishing. Education.
Fronstin, P. (2012). Private health insurance exchanges and defined contribution health plans: is it déjà vu all over again?. EBRI Issue Brief, (373).
Klingner, D. & Nalbandian, J. (2015). Public personnel management. Routledge.
Robinson, J. C., & Ginsburg, P. B. (2013). Consumer-driven health care: promise and performance. Health Affairs, 28(2), w272-w281.
Snell, S. A. & Bohlander, G. W. (2015). Managing human resources. Nelson
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