Question

Does it make sense as a matter of public policy to continue to rely so heavily on employer-provided retirement and health plans?

Hi Expert! I have reviewed the answers already posted. I'm looking for an original answer with no plagiarism. Thanks in advance!

Answer 1

In today’s world, as the pressure of health plans and retirement is ever growing and concerning on the part of the employers as well, mere dependence upon the employers, is a matter of concern. The question mainly comprises of the fact that the Public now questions the efficiency of the Public policy through which the employers shall buy the health care plans and others from the Government, and whether the benefit in terms of saving, is passed on to the employees as well in the process apart from benefitting the employers. However, it is believed that majority of the employers shall shift their health plans purchases through the Government exchanges by the coming new year in accordance with the recent health law, as per the research conducted by S&P and in the process, may save up to 4% of their expenses upon such purchases. These savings would in turn give boost to the profit margins of the Companies, which, if invested rationally, may help in improving the sales turnover and thereby enhancing the income scope of the Employers. Further, it shall be hence sensible to even believe that at least a portion of the earning, shall pass on to the employees in terms of pay hikes or improvement in other perquisites of theirs. In fact, the more sensible part on the part of the employers would be to pay to the employees a certain amount as a stipend as against the employees’ direct purchase of the health plans through the Government exchanges. Hence it shall be a win-win situation for both the parties with a sensible Government intervention and shall thus make sense as a matter of public policy to continue to rely so heavily on employer-provided retirement and health plans.