Week 4



Week 4

Discussion 1

From the first e-Activity, compare the arguments presented in the video to the claims regarding the cost of health care in the text in 2004. Be sure to include discussion regarding the impact on small business.

The arguments presented in the activity suggest that medical costs are rising and skyrocketing due to which the companies are facing an increase in the costs. There is 130% increase in the medical costs as compared to the previous years. The uncertainty in the medical costs has increased and there is no increase in the wages. It has increased by 10%. Single women tend to face problems and further unique risks as compared to planning with their partners. Financial planners have been increasing income planning practices for retirement income. The income planning services will be increased because the costs are skyrocketing and currently baby-boomer market is untapped. The impact on small businesses is that there expenses are increasing because employee medical costs are increasing due to increase in insurance premiums.

From the second e-Activity, speculate which of the contributors to the increase had the greatest impact on the increase. Provide a recommendation for one “underlying cost” factor that a small business can implement.

The increase in chronic disease has the major impact on the costs of health care. Obesity is spreading like storm in United States due to which people are severely affected by diabetes and cardiovascular diseases. Increase in sedentary lifestyle had also leaded to increase in cardiovascular diseases. The increase in chronic diseases had lead to increase in medical costs. Recommendation for small businesses is that they can invest in deductible medical plans which can reduce the impact on the expenses of the small businesses. Because they have low premium and have high deductibles which means that if none of the employee claims for health insurance the costs can remain low.

Discussion 2

Develop a unique definition for insurance and explain your definition.

Insurance is the amount which saves you from future uncertainties. The more you feed the insurer the more protection you will obtain.  Insurance helps in protecting the employees from uncertain future events. These include, medical, healthcare, Asset Theft or damage. they provide replacement depending on the comprehensive plan which an individual had obtained. The more they pay the more comprehensively they are insured against the damages.

Review the various health insurance plans commonly offered and determine which one is the most effective and efficient in accomplishing what it is designed to accomplish. Then make a recommendation that would improve the selected plan.

There are various health care plans which include the individual coverage and group coverage. The group insurance is effective in achieving the objectives because it pays less and provides comprehensive insurance against the complete employee healthcare expense. the plan can be improved by providing insurance bonuses in terms of zero claims on the employees. this can help companies in reducing their insurance expenses and moving towards deductible plans and self insurance pools. It will also benefit the insurance ...