Knowing that health care can now be acquired on public and p

Knowing that health care can now be acquired on public and private marketplace exchanges, what is the role of companies when it comes to providing health care to employees? Should they even concern themselves with such benefits and instead just provide employees a stipend? Thoughts?

What is the purpose of the Social Security Act and how does it affect the compensation of today\'s employee?

Solution

In the wake of availability of the health care at different marketplace exchange, the role of the employer or companies is to ensure that these employees have adequate health insurance to cover their health care expenses at a minimum premium charge or at no cost. Such benefits should be considered as fringe benefits offered to the employees that boost the employee motivation, contributing positively to the productivity. The role of employer also helps in increasing the quality of life and life duration, a measure of the healthy society of the nation. As per the new health care act, the employees can opt for the insurance plan and the premium they are willing to pay. It should be facilitated by the employers.
They should concern themselves with the benefits as such coverage becomes a point to attract the top talent. Besides, the benefits such as higher productivity, higher employee engagement, longer tenure of work, improved employer branding and lower employee turnover gives much more benefits to the employers than the cost they incur in offering health care insurance. Offering stipend to the employees, will not make them entitled to the benefits associated with the motivated employees.
Purpose of social security act is to provide social welfare for the elderly people, blind person and other people and children facing different challenges. These benefits include health care and retirement income among the others. The act also enables states to come up with specific provisions and a system that can work for the welfare of those who cannot take care of themselves.
The act makes today’s employee to pay social security tax that is deducted from his paycheck. Further, the equal contribution is made by the employer and is transferred to the government. So, today’s employee gets a relatively lower amount as in-hand compensation due to the payment social security tax.