HEALTH BENEFIT COSTS

Health Benefit Costs

Health Benefit Costs

1. To maintain benefit costs for current employees, do you think companies should eliminate benefits for retirees? Why or why not?

Retiree health benefits are basically distinct from hardworking worker advantages in one significant way: an employer's responsibility to supply wellbeing advantages for an hardworking worker end after that employee leaves. The responsibility to yield for wellbeing advantages for a retiree, although, extends for an mean of 21 years after retirement until the death of the retiree and/or their suitable dependents. Paying and accounting for the cost of wellbeing advantages for hardworking workers on a year-to-year, cost-based accounting scheme make sense. Accounting for retiree advantages by describing only the present year's charges conceals the detail that the boss has a extending economic obligation. Accurate describing of an employer's investments thus claims that retiree wellbeing advantage charges be accounted for and described as those charges are acquired, not easily when they are paid. (Deborah  Kirk 2009)

 

2. To cut benefit costs, employers could charge employees more for health benefits or reduce the contributions to pensions. Which do you think is best and why? 

Most employers are searching to decrease their liability in this locality by decreasing retiree advantages inside the restricts of their obligations. This continues a contentious topic, because more than 70 per hundred of all work arguments center on wellbeing advantage matters, with retiree treatment a centered concern. Popular schemes encompass expanded cost distributing, declined advantages, and declined eligibility. In detail, more than 67 per hundred of advantage managers of large companies have asserted that they will decrease advantages over the next couple of years to their FAS 106 liability. Nearly two-thirds of employers (65 percent) foresee inquiring future retirees to yield more for treatment and half of employers anticipate to change their design design. ...