M3C Identification of managerial, financial, legal and ethical implications - Essay Example

The Rising Health Care/Insurance Costs The Rising Health Care /Insurance Costs Introduction In this paper we are going to look at the financial, managerial ethical and legal implications of the rising health care/insurance costs. We are going to base on the financial implications of the problem in an organization. Pilzer (2005) says that most operations in hospitals are extremely inefficient, which is why they currently consume 45 percent of medical spending. This will change once hospitals are subject to genuine competition, especially from hospitals outside the United States.

For example some of the best private hospitals in the world today are located the United States in countries like Thailand and India. Health insurance has its challenges in the world today and many organizations in the world today face many problems due to the insurance policy. Problems are sometimes evident when the employees of various companies or organizations are taxed much more because of the high living standards today. Problems that are financially related to the health insurance scheme, the ethical and legal implications faced by the people using the health insurance scheme.

Problems basically come into an organization when employers do not involve their employees of the increase in the cost of the scheme. It could be effective if the employers are told what would happen prior to the imposture of the tax. Pilzer (2005) also goes ahead to say that in 2006 instead of an employer sponsored group plan, some employers are offering defined contribution health benefit plans whereby the employer simply reimburses the employee; tax free, for the cost of their individual and family policy.

This effectively lowers the cost of individual or family policy up to fifty percent since an employer receives tax deduction and the employee is not taxed on the reimbursed amount. Most people today with individual and family policies are paying their premiums themselves without an employer which costs them twice as much on the after tax basis. These majorly affect the employees of an organization financially.In some countries today the taxation is mostly imposed on any employee working with the government sector or a private sector.

The policy is usually discussed by the ministry of health and becomes effective on the date passed by the relevant parties. Here, they are taxed on a monthly basis and this could be a disadvantage and a disadvantage to some. The insurance fund benefits the whole family and helps in paying hospital bills for someone who is sick. The major problem crops up in an organization when the premiums are increased after some time. This really affects people because it is not the only thing they are taxed by the end of the month.

ConclusionCrawford (1997) explains the need of people and especially students without legal training. The main purpose of the text is to educate students to recognize legal problems so that they seek advice from legal counsel. People around the world should be able to go through the book and learn more about the legal implications of the health insurance policy. The policy has its advantages and disadvantages basing on who provides the policy. It depends also with the insurance company that one is dealing with especially if one chooses their life insurance policy.

Some companies are willing to compensate while others are not willing. This is where the legal help is needed.ReferencesPilzer, P.Z. (2005). The New Health Insurance Solution. Kansas: Michael J. Crawford, M. (1997). Life And Health Insurance Law. Boston: loma Edition.