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Chapter 10 Case Study Strategic Compensation

In: Business and Management

Submitted By erlajoy
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Summary of Chapter 10 Case * Frontline PR is a public relations firm with 150 full time employees, consists mainly of their staff plus some administrative and operations people. Frontline is currently struggling with the cost of health care insurance * Currently offers their employees fee-for-standard, 300 deductibles, 20 percent co insurance, FSA Flexible spending account * After attending and speaking with several experts at the national conference on compensation on Health Savings Account, she thinks an HSA will be a viable option for Frontline. * She believes that making such change from standard fee-for-service plan to HSA with high- deductible insurance plan could result in significant cost savings for the company. Even though the company would contribute to each employee`s HSA, the overall costs for healthcare benefits would still be less than its current option * Susan discussed the HSA option to the Finance Director Allison Jones, from the financial perspective Allison agrees that the option would be a good step to start controlling healthcare cost although Allison thinks that as an employee he is not sure if high deductible health insurance plan is the right option for the company. * Susan is convinced that HSA would offer a significant cost savings to the company, after talking with Allison she is unsure if she will recommend it for Frontline employees.

QUESTIONS
What are some advantages of implementing HSA option? What are some potential disadvantages of HSA option? If you are Susan what do you recommend and why?

It is given that health care costs have gone up for several years in a row. Those who can still afford health care are often finding that their benefits are being trimmed while their co-pays and deductibles are increasing. In the case of Frontline, most of its employees like Allison will surely oppose to the…...

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