In the past few years, all the businesses were benefits-oriented and
did not give more preferences to their customers. Usually, these
companies only look for the cost that comes from the productive
work of the employees. However, the modern era has changed the
trend where the companies are giving emphasis on the productivity
and engagement of the employees, which usually comes from the
employee's satisfaction at the workplace. All these things became
possible because of the emergence of the human resource
management that is giving focuses on the proper management of the
employee relations and their satisfaction level at the workplace.
Moreover, many employers are offering post-retirement benefits to
their staff by showing care to their staff aside from the pensions. The
benefits usually include disability insurance, life insurance, and health
insurance.
In the present research context, the researcher has chosen one of
the post-retirement benefits, i.e., health insurance. In general, health
insurance is considered a valid contract between the policyholder or
insured and an insurance company or insurer enforceable in a court
of law . Here, the employer bears the cost incurred on the health
insurance benefits. Apart from that, the retired employees often
contribute to these benefits through making a contribution when
needed, co-payments, and the payment of deductibles. Under this
category, some of the non-cash payment benefits fall include legal
services, dental, vision care, and tuition credits. As these benefits are
completely sponsored by the companies, it could be more costly for
the companies. This type of postretirement benefit is usually
provided by public and private companies, non-profit organizations
like charities, colleges, universities, religious groups, and federal and
local government agencies. This benefit-cost may be shared by both
the employees and the employers or can be paid by the employer
alone, which is very similar to other benefits when accounting for a
pension. Here, the difference that can be identified in health
insurance is the employer can be very open to different risks and
liabilities. For instance, the employer is offering the same health
insurance coverage to the retired employees as well as the current
employees, which could lead to risks and liabilities.
The researcher has identified that all these three benefits are some
similarities and differences. But the one that makes sense is health
insurance, as it is essential for retired employees. With the growing
age, the health insurance provided by the employer could be more
beneficial to them.
References
Whalen, J. M., Jones, J. P., & Pagach, D. P. (2017). Intermediate
accounting: Reporting and analysis. Boston, MA: Cengage Learning.
