Case Study No

Topics: Health care, Health insurance, Health Pages: 6 (2471 words) Published: November 17, 2014
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 they can’t cope with this type of approach or they can’t change their habits and lifestyles and also because of the high monetary penalty if the employee can’t abide with his rules/approach. However, our group agrees with his approach because his plan to lower health care cost through providing a wellness program facility is a win-win situation, not only can the company be able to cut costs, but also making employees live a healthier life leads to a more productive performance, improved mobility in doing their jobs and also a happier state. Being healthy means cutting healthier care spending in the long run. Employees could be more confident and competent in building and interacting with their customers and various stakeholders. His approach is also a motivation for the employees to be engaged in healthy living. Furthermore, they become loyal to the company, as they feel that the company considers them as an important asset to operations, values and cares for them. Mr. Hagedorn’s approach may also attract new competent and potential employees because of the benefits they will get; because a good work environment and a healthy way of living await them in the company. Also, the program Mr. Hagedorn is offering ranges from offering information to employee’s fitness education and company's fitness centers. These modes of helping and assessing the employee’s health contribute positive impacts on both, the company and its employees. After all, the welfare of the employee has a direct impact on the success of the company. 2.) What benefits and drawbacks are there to this type of wellness program? (a)employees (b)company (A.1) the benefits of this type of wellness program for employees are: •Reduce Medical Cost

Through their wellness program facilities, their employees would be able to live a healthier and happier lifestyle which in turn reduces medical expenses for the employees, thus, they can cut off their company’s health care cost in the long run. •Built sense of...

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