Human Resource Management Chapter 13

Holiday pay

10-12 holidays approaching 20 to 30 days

Preferred provider organization (PPO)

A health care provider that contacts with an employer or an employer group to supply health care services to employees at a competitive rate.

Portability

A pension plan feature that allows employees to move their pension benefits from one employer to another.

401(K) plan

Agreement in which a percentage of an employees pay is withheld and invested in a tax- deferred account.

Responsibilities for Benefits Administration: Managers

Answers simple questions on benefits maintain liaison with HR specialist on benefits Maintain good communications with employees near retirement Coordinate use of time-off benefits

Managed care

Approaches the minor and reduce medical costs through restrictions and market systems alternatives.

utilization review

Audit of services and costs billed by health care providers.

Benefits to employees regarding taxation

Benefits are not taxed as income to employees.

Flexible Spending accounts

Benefits plans that allow employees to contribute pretax dollars and fund certain additional benefits.

Disability insurance

Both short term and long term disability, provided continuing income protection for employees who become disabled and unable to work Long term is more common because employers cover short term leave under sick leave programs

Life Insurance

Bought as group policy employer pays all or some of the premiums 1/2 or tow times employees annual salary

Health savings Accounts (HSA's)

Combined with high-deductible insurance . to cut employer costs. Employer and employee can make contribution to account Unused employee amounts can be rolled over for future health expenses Incentives are included to encourage employees to spend less on health expenses Contributions must be uniform for all employees enrolled in HSA accounts unless they are based on a cafeteria program

Responsibilities for Benefits Administration: HR Unit

Develops and administers benefits systems Answers employees' technical questions or benefits monitors benefits cost-control approaches

Legal Insurance

Employees or employers pay flat rate fee for a set amount of legal assistance time each month. In return, they have the right to use the service of a network of lawyers to handle their legal problems.

Health Care Benefits

Employers provide a variety of health care and medical benefits through insurance coverage.

Well Pay

Extra par for not taking sick leave

Serious health conditions

Health condition requiring in-patient, hospital, hospice, or residential medical care or continuing physician care.

Consumer-driven (CDH) plan

Health plan that provides employer financial contributions to employees to help cover their health-related expenses.

Health reimbursement arrangement (HRA)

Health plan which the employer sets aside money in a health reimbursement account to help employees pay for qualified medical expenses

Types of health Benefits

Major Medical 71% Prescription drug benefits 67% Dental Benefits 46% Short-Term disability 39% Long-Term disability 30% Vision Benefits 29% %= Percentage of workers.

Contributory plan

Pension plan in which the money for pension benefits is paid by both employees and the employer

Noncontributory Plan

Pension plan in which the money for pension benefits is paid by both employees and the employer.

Stock purchase plans

Plan in which the employer provides matching funds equal to the amount invested by the employee for the purchase of stock in the company.

Paid-Time off (PTO) plan

Plan that cobines all sick leave, vacation time, and holidays into a total number of hours or days that employees can take off with pay.

Health maintenance organization (HMO)

Plan that provides services for fixed period on a period on a prepaid basis

Flexible Benefits plan

Program that allows employees to select the benefits they prefer from groups of benefits established by the employer

Workers Compensation

Provides benefits to persons who are injured on the job.

For workers compensation

Requires employer to give cash benefits, healthcare, and rehabilitation services to employees for injuries or illness occurring within in the scope of their employment.

Pension Plans

Retirement program established and funded by the employer and employees

Cash Balance plan

Retirement program in which benefits are based on an accumulation of annual company contributions plus interest credited each year

Defined- Benefit plan

Retirement program in which employers are promised a pension amount based on age and services.

Defined contribution plan

Retirement program in which the employer makes an annual payment to an employees pension account.

Vesting

Right of employer to receive certain benefits are provided by the employer

Severance Pay

Security Benefit voluntarily offered by employers to individuals whose jobs are eliminated or who leave by mutual agreement with their employers.

Adverse Selection

Situation in which only higher-risk employees select and use certain benefits.

Government Mandated Benefits

Social Security( federal) and Unemployement insurance (state) Are funded through a tax paid by the employer based on the employees compensation. Workers Compensation is required in all states

Copaymetn

Strategy of requiring employees to pay a portion of the cost of insurance premiums, medical care, and prescription drugs,

Under FLMA employer is required to

Unpaid leave to employees with certain medical or family difficulties.

HIPPA ( Health insurance Portability and Accountability act)

allows employees to switch their health insurance plans when they change employers, and get new health coverage with new comp. Regardless of preexisting health conditions.

Family Medical Leave Act

covers all federal, state, and private employers with 50 or more employers who live within 75 mile of the work place worked 12 months and 1250 hrs in previous year

Benefits Cost Control

expenditures have risen significantly in the past few years, particularly for health care. Essentially causing employers to reduce or drop benefits offered to employees.

Another common means of benefits cost control is: Cost Sharing

having employees pay more of their benefits costs

Benefit

indirect reward given to employee or group for organizational membership.

Part time employee benefits

many employers do not provide PTEB, EXECPT FOR: Time off leave benefits

HIPAA requires employers to

most employees be able to obtain coverage if they were previously covered in a health plan and provides privacy rights for medical records.

COBRA ( consolidated omnibus budget reconciliation act)

most employers except churches and the federal government with 20 or more full time and/or part time employer to offer extended health care coverage to certain groups.

COBRA employer is required to

provide health care insurance for a time after the employees leave the organization.

Leave of absence

time off with or without pay military leave, election leave or jury leave some pay when they take these off. Funeral leave or bereavement leave

Thrift plans, savings plans, or stock investment plans

types of stock purchase plans

Vacation pay

use a " use it or loose it" policy some have a "Buy Back" Policy some require employee to take minimum number of vacation days off in a row.

Long term insurance u

usually voluntary, allows employees to purchase insurance to cover costs for long term health care in a nursing home, and assisted living facilities or at home.