Case Study No
1.) What do you think about Hagedorn’s approach to controlling employee health care cost? Do you agree with it? Why or why not?
Mr. Hagedorn’s approach to control employee health care cost is through providing a wellness facility program for their employees and also creating rules concerning on health and monetary punishments to those who don’t want to follow these rules. From the 20% of the company’s net profits for the health care and health risk assessments, the goal is to limit health care insurance costs. First, Mr. Hagedorn made a companywide wellness program which is called the LiveTotal Health program and hired a third party, Whole Health Management to run it. Next, he started encouraging his employees to take health-risk assessments and for those who don’t take the health risk-assessments to pay $40 per month more in premiums. And for those employees who found to be moderate to high risk through the assessments and will not comply will pay an additional $67 per month on top of the $40. As we see it, Mr. Hagedorn's approach is both intrusive and forceful. The employees cannot argue and are forced to comply with his requirements but his company has some rights since they are the one paying the bulk of amount for the premiums. Employees who surrender to his wellness program facility are forced to do monthly check ups and also quit smoking, drinking and other bad health habits. His approach is also very sudden, he only thought about it overnight and his type of approach needs a lot of adjustments especially for those employees who had already incorporated certain unhealthy habits into their lifestyle. His approach in controlling employee health care cost through making a wellness program facility and also letting his employees quit smoking and other bad health habits may also lead to certain losses in their organization in terms of the work/ labor force because there is a possibility that efficient and effective workers are going to be terminated because
Mr. Hagedorn’s approach to control employee health care cost is through providing a wellness facility program for their employees and also creating rules concerning on health and monetary punishments to those who don’t want to follow these rules. From the 20% of the company’s net profits for the health care and health risk assessments, the goal is to limit health care insurance costs. First, Mr. Hagedorn made a companywide wellness program which is called the LiveTotal Health program and hired a third party, Whole Health Management to run it. Next, he started encouraging his employees to take health-risk assessments and for those who don’t take the health risk-assessments to pay $40 per month more in premiums. And for those employees who found to be moderate to high risk through the assessments and will not comply will pay an additional $67 per month on top of the $40. As we see it, Mr. Hagedorn's approach is both intrusive and forceful. The employees cannot argue and are forced to comply with his requirements but his company has some rights since they are the one paying the bulk of amount for the premiums. Employees who surrender to his wellness program facility are forced to do monthly check ups and also quit smoking, drinking and other bad health habits. His approach is also very sudden, he only thought about it overnight and his type of approach needs a lot of adjustments especially for those employees who had already incorporated certain unhealthy habits into their lifestyle. His approach in controlling employee health care cost through making a wellness program facility and also letting his employees quit smoking and other bad health habits may also lead to certain losses in their organization in terms of the work/ labor force because there is a possibility that efficient and effective workers are going to be terminated because
References: https://www.americanexpress.com/us/small-business/openforum/articles/crazy-corporate-wellness-programs-that-work/ http://greatist.com/health/healthiest-companies http://showbizandstyle.inquirer.net/lifestyle/lifestyle/view/20081006-164932/Benefiting-from-office-wellness-programs https://www.maxicare.com.ph/4082/maxicare-and-abs-cbn-present-the-kapamilya-health-wellness-fair-2014-3/ http://greatist.com/health/healthiest-companies http://www.telusinternational.com.ph/?q=node%2F32