Cost Of Health Care Essay

Abstract

In the United States employee benefits constitute major component of an employee’s financial and economic security (Rosenbloom, 2011 p.1). This paper examines how employers and employees can share the cost of healthcare by creating new ways to save money with in the various types of health care plans. This paper will also explore the evolution of the health care system and why it had to evolve. The primary plans that have been researched are health savings accounts, health reimbursement accounts and the medical portions of the cafeteria plans. Second this paper will also examine new initiatives that encourage employees to save money for future health care needs. Lastly we’ll discuss how government plays a part in citizen’s health care options.

Sharing the Cost of Health Care and Creating New Ways to Save Money There are a variety of benefits companies offer to their employees. Some of these benefits are company cars to drive back and forth to work on the company expense, tuition reimbursement, meal plans and even onsite game rooms. Employee benefits are a part of almost every employee’s compensation meaning that anything offered by the employer such as salary and tangible services received by

First, insured patients demand any and all medical services regardless of cost, even those offering the slightest possible health benefits. Economist call such excessive demand a moral hazard. Second, autonomous providers receiving fee-for-service payments have a financial incentive to recommend the costliest of treatments, even those that are of little value to patients. Economist call this demand inducement. With increase health care, alternate plans were implemented such as health savings accounts, health reimbursement account and cafeteria