0To prepare for this Discussion: Review the materials on critical reading strategies and on the MEAL plan for paragraphs.Read the provided article in the Learning Resources, taking note of where the a

As it should be, all businesses with workers are required by law to offer insurance ranging from compensation, unemployment insurance, and disability insurance depending on the location of the company. Currently, America has approximately three million counterparts with health insurance policies, given as an employee benefit or dependency (Getzen, 2015). However, the remaining ninth, purchase individual medical insurance coverage. This is why the obligation of the health providers and the government is crucial.

Both the federal government and employers should ensure citizens within the population. Given that the population exhibits both health and sick people – especially with chronic illnesses, health insurance provisions should be provided to prevent deaths and support those who can hardly afford medical expenses. The integration of Obamacare had its main aim to improve the lives of citizens in the United States and globally. Therefore, it makes its obligation to ensure that employers provide health insurance to their employees. Penalties are a result if health benefits are not provided to the employees by their respective employers (Pilzer & Lindquist, 2014).

Equally, the health organization should provide workers with shared responsibility coverage. It is also important that employers include health benefits and paid allowances for workers aged 40-50 with chronic illnesses. This is necessary to support them during and after their service delivery. Since health insurance is designed to give patients an affordable life, free from huge medical expenses - all employees should be entitled to a health insurance coverage which will create a win-win situation for both the employers and employees – employers will work for quality service delivery and the company benefits for more customers.

The employer must provide health insurance coverage for the 20-30-year-old workers with no known health problems to support their health status in case of an emergency. Moral hazard in an organization occurs when one party (either the employer or the employee) has provided misleading information after an agreement has been made due to the belief of not experiencing consequences for their deeds (Nickolas, 2019). A moral hazard can impact the company’s service delivery and minimize the yielding capacity. Given that one party may decide to take unprecedented risks to gain more profits, it can subject failure to the organization’s system.

Adverse selection, on the other hand, occurs when the employer or the employee in a deal possesses different and more accurate information than the other (Hayes, 2019). This is a disadvantage to the party with less information and it often leads to inefficiency in pricing strategy, services offered and quantity of goods provided. As a recommendation, the employer should provide life insurance coverage as it would stand for the families of the employees if there is an offsetting loss of income or perhaps death.

References

Getzen, T. (2015). Health economics for the healthcare administrator (Laureate custom edition). New York: Wiley.

Hayes, A. (2019). Adverse Selection. Economics. Retrieved from https://www.investopedia.com/terms/a/adverseselection.asp

Nickolas, S. (2019). Moral Hazard vs. Adverse Selection: What’s the Difference? Retrieved from https://www.investopedia.com/ask/answers/042415/what-difference-between-moral-hazard-and-adverse-selection.asp

Pilzer, P., & Lindquist, R. (2014). Is Employer-Sponsored Health Insurance a Thing of the Past?. Retrieved 8 September 2019, from https://www.lifehealth.com/employer-sponsored-health-insurance-thing-past/