The rising health cost in US

The rising health cost in US

Introduction

The health costs are rapid, rising at a high rate in the United States of America as compared to the past decades. The main purpose of health insurance is to minimize the costs for the employees since it covers pre and post hospitalization, medical checkup, and transportation charges related to health costs.

The rising health cost

The increasing health costs hence have affected the profit margin generated by the companies since they have resulted to increasing of the total expenditure for the organization, which affects the profit maximization and shareholder wealth maximization objectives (Babcock & Kogut, 2016). The increase in health costs has increased the conflict between employers and employees due to the high demand for high pay to match the rising costs of health. The disagreement has affected the overall performance and productivity of the organization; this is because of employee morale. The employers hence have embraced the following in the attempt to minimize the health costs which employment of people on contract basis or even outsourcing of service from other service providers with the primary objective of minimizing costs (Bauchner, 2019). Companies are also coming up with their health plans for their employees, which aims at minimizing expenditure for the companies.

Conclusion

The state is required to formulate policies aimed at harmonizing health costs in the country. This will assist in minimizing the health costs for employer thus contributing to organization success

Hi Srikanth Talluri,

The organization is formed to generate sufficient returns for the shareholders. The companies are usually required to embrace the best internal control to minimize the costs. The rise of health costs in the United States is alarming, which has resulted in increased conflict between employers and employees in the United States. The employers are anticipating to cut on costs to minimize costs related to health costs to aid in generating sufficient profits for the companies (Babcock & Kogut, 2016). This hence resulted in employer employing staff on a contract basis to aid in minimizing costs for the organizations. The rise of health has affected the provision of quality health covers by employers to their employees. Thus it has affected the employee performance within the organization. The state should focus on formulating favorable policies tailored toward harmonizing health cover costs for employees within an organization to aid in resolving any conflict between employers and employees.

Hi Santhosh Ganta,

The provision of health covers to employees is essential to employees because it contributes towards the improvement of employee productivity and performance. The health costs covered by health cover include medical check, outpatient services, among others. Research has documented the rise of health costs in the United States, which has affected the relationship between employers and employees, resulting in increased conflicts. Employers have embraced the following strategies in anticipation of cutting on health costs (Babcock & Kogut, 2016). They include outsourcing, contract employment of employees, among others. The strategies are tailored towards minimizing the costs to maximize the final outputs within the organization. This has contributed to the lowering of employee morale and performance within the organization resulting in the generation of low-profit margins for the organization. This has adversely affected the liquidity position of these organizations and also the relationship between employers and employees. Employers and governments are required to formulate the best strategies to resolve the issues.