Empire Blue Cross Shield Company is a US-based hospital insurance firm. This insurance firm offers a broad range of insurance products; all in various funding arrangements (Empire Blue Cross Blue Shield Homepage, 2008). Boasting of over 75 years experience in the insurance industry, the company has expanded its activities to cover all market segments.
Throughout its existence, the company has operated a unique quality policy differentiated by the following key factors:
Diverse product portfolios
Robust employee and member websites
Use of cutting-edge technologies
Superior services
Seamless implementation processes
Strong and data integrated business partnerships
Problem identification
Before the year 2007, Empire Blue Cross Shield used to apply a fixed co-payment to all insured clients. This meant that whether the insured clients were purchasing prescription drugs, visiting offices or undergoing emergency X-rays, they had to part with the same co-payment figure (estimated at $ 20).
However, things changed in the years succeeding 2007 when the company reviewed its health policy. During this time, the company established a new co-payment plan. This plan required that each insured members co-payment was to correspond to the contributions or the policy insured against. This requirement meant that the company had increased its workload since it had a large of clients under its membership. As the insured members continued to frequent offices, hospitals and chemists for various services, the management could not successfully establish the exact co-payment quotations to be paid by each member. At some instance, the insurance firm quoted $ 15 for office visits, $ 10 for emergency services such as, X-rays and $ 8 for prescription drugs. The determination of the exact co-payment proved a difficult challenge for the firm management.
As the management lagged behind in determining the members co-payments, most members health bills kept on increasing as they kept checking in for their services. A dispute therefore arose when members started complaining about the insurance firms delay in settling their health bills. When the situation worsened, some members contemplated withdrawing their membership.
Study of the problem and the chosen measurement tools
Being a survey kind of study, the researcher chose to use conclusive descriptive research approach in carrying out the study. This approach was chosen based on its suitability in answering the; who, what where, when and how questions of any quality assessment research which formed the core questions of the study (Housden, 2008, p.62). The study population consisted of the firms insured members in New York. The study area was chosen because being the global headquarters of the giant insurance firm; it emerged as the best location on which the qualitative studies could be carried out and inferences to other locations derived.
The researcher used random sampling technique to select 20 insured clients for interviewing. This technique was preferred since a very large population was to be involved. The technique gave each user an equal chance of being interviewed thus ensuring that objective inferences were made to the study population (StatPac, 2011).
Presentation of results
When the researcher interviewed respondents to establish their levels of satisfaction in the reviewed co-payments, the following table 1 captured their responses. 5 represented highly satisfied while 1 represented less satisfied.
Measurement variables
Rating/Score
Suitability of the reviewed plan
2
Accuracy of the reviewed plan
2
Reliability of the reviewed plan
3
Matching of expectations
1
Table 1 capturing respondents results on the quality of the new co-payments
Bar graph1 depicting table 1 results
Result Analysis
From the two diagrams above, it clearly emerged that the insured members, at Empire Blue Cross Blue Shield, were dissatisfied with the companys reviewed co-payment scheme. Though most members had high expectations when the plan was reviewed, the same members were ready to express their dissatisfaction with the suitability of the new scheme. Members who had taken multiple medical covers thought that by subscribing the multiple and split payments, they were likely to be paying more for their services. A good example can be taken of a parent who insured his 8 family members with different covers. To stress that each of the insured members needed to subscribe to the above plan, meant that this parent was making repetitive payments for the services. This interpretation was as expressed by these categories of such members.
Beside, small contributors were of the view that the system could exploit them especially in instances where they were purchasing prescribed drugs of fewer amounts. They justified their claims by stating that by purchasing drugs of fewer amounts and paying the stated co-payment figures, they were likely to be benefiting the insurance firm by covering part of its costs.
Members also feared that the delayed settlement of health bill could result in their household belongings being auctioned by health institutions to recover their costs. Likewise, they could be restricted from seeking hospital services.
Proposed action plan
The researcher, after presenting and analyzing results, proposed that the insurance firm should revise its adopted structure to cater for the wishes of its insured members. This is so because for many businesses to survive, the customer should always come first. The insurance firm should hire a reputable consultancy firm to carry out studies on the above subject. In carrying out its studies, the consulting firm should start by providing a framework on which it is going to achieve its stated aim and goals.
The researcher proposed interviewing of affected insured members as the best method to be used by the firm in the collection of data. A review of old co-payment articles would also be ideal in this study.
Having collected and analyzed its data, the consultancy firm should present its findings to the insurance firms management. The management should then study the reports findings and recommendations after which they will be in a position to establish a suitable co-payment scheme for its members since in any service business, the customer is the only one who judges quality; and thus will always be right (Fitz-enz, 2000, p.239).
Conclusively, to help assimilate the proposed solution, the researcher proposed that the management should evaluate the performance of the proposed scheme. This was to be attained by subjecting the new scheme to measurement variables. For example, the management of the insurance firm could decide to carry out studies to establish the number of new members. Increasing numbers will point to the success of the scheme and thus more improvements to anchor the changes.
The scope of this assignment will be to assess the status of diversity within an organization. This study will show the bottom-line benefits when corporations are diverse. By incorporating diverse management practices, companies achieve greater profitability and productivity. Therefore, an organizational culture that fosters diversity is a key factor in sustained business performance and value creation. Progressive insurers are committed to ensuring that workplace culture and work environment reflect the diversity of employees, clients, and shareholders. The research is dedicated to providing a safe, vibrant, and welcoming place for all employees, regardless of their race, origin, or gender. Progressive insurers welcome people from all backgrounds who want to join in creating value for our company, clients, and communities.
A diversity audit is an evaluation that measures where an organization is, in terms of its change efforts. It can be used to assess the effectiveness of diversity recruiting and retention efforts, measure the value of diversity training, and survey workers about the success of diversity initiatives, such as supplier programs, employee resource groups, and diversity councils (Kaur et al., 2020). Progressive Insurance is one of the leading companies to adopt this practice. Their diversity, equity and inclusion program is a model for others to follow. This audit provides a clear, concise, and metrics-based assessment of their progress in achieving this goal. It is about cultivating inclusive environments for all employees that enable their contributions to company goals through fair, equitable treatment and appreciation.
The diversity audit is designed to be a capstone assignment that measures where an organization is in terms of its change efforts. Diversity audits are evaluations based on qualitative and quantitative information about the status of diversity within the organization (Harvey, 2022). Today, many organizations conduct audits to assess their progress in determining the effectiveness of diversity initiatives, measuring the value of diversity training, and surveying workers about the success of diversity initiatives, such as supplier programs, employee resource groups, and diversity councils. These audits reveal whether a gap exists between what is being done and what the organization should do in terms of diversity and are used as a basis for action planning.
This research on insurance is critical to the outcome of your diversity audit and will provide critical information on where your organization stands, as well as help realize an organizations progress in diversity. The goal is to be able to assess the status of the current efforts against those needed for a truly diverse culture (Muinde & Prince, 2022). This research paper will investigate multiple stakeholders perceptions, such as how diversity affects the quality of services provided to customers, whether it is a legal requirement or an ethical duty for service providers.
An inclusive and diverse workplace is a place where everyone has the opportunity to contribute, both in their immediate roles and across different levels. This is true throughout the organization. With progressive diversity equity and inclusion training, you will learn how critical it is to ensure that diversity policies and practices are implemented throughout the organization, giving everyone an equal opportunity to succeed. Through this program, you will gain insight into how to create an inclusive environment that values the unique contributions of people from different backgrounds and cultures (Kaur et al., 2020). This family of inclusivity tools includes an audit tool to measure the status of diversity at Progressive and includes a diversity planning module to help organizations assess their progress in diversifying the workforce.
Progressive Insurance is committed to conducting comprehensive, high-quality audits that offer practical solutions to business challenges. Our diversity equity and inclusion audit is designed to be a capstone assignment that measures where an organization is in terms of its change efforts. Diversity audits are evaluations based on qualitative and quantitative information about the status of diversity within the organization. Today, many organizations conduct audits to assess their progress in determining the effectiveness of diversity recruiting and retention efforts, measuring the value of diversity training, surveying workers about the success of diversity initiatives, such as supplier programs, employee resource groups, and diversity councils (Rodrik & Stantcheva, 2021). These audits reveal whether a gap exists between what is being done and what the organization should do in terms of diversity and are used as a basis for action planning.
The diversity audit is a tool to measure the current state of cultural inclusion and effectiveness in the workplace. Audits are a critical piece of the change management process, as well as a reflection of an organizations commitment to diversity and inclusion. A diversity audit is a comprehensive evaluation of the organizations initiatives for diversity and inclusion. Audits measure progress in developing and implementing diversity programs, monitoring how well these programs are working, reviewing the people organizations have hired due to diversity recruitment and retention efforts often called outreach establishing an accurate baseline of what organizations are doing right now, and determining if there are any gaps between what is being done and necessary next steps.
The baseline audit is a tool to assess the current state of diversity in your organization. It reviews the following areas: recruitment, hiring and staffing, inclusion and recruitment efforts, labor unions, leadership development, and succession planning, retention strategies, compensation/benefits, and workplace culture/climate. Progressives use diversity audits to determine the status of diversity within an organization. A diversity audit collects quantitative and qualitative information about how well an organization is involved in building a diverse workforce, as well as whether there is a gap between what it does and what it should do in this area. Progressives use this type of audit when planning to build their outplacement groups resume database, recruiting new employees, and raising awareness about discrimination.
References
Harvey, P. Carol (2022). Evaluating Diversity Management. Conducting a diversity audit rubrics. Suffolk University.
Kaur, R., Kaur, G., Sahay, U., & Saini, K. (2020). A study of diversity management in different companies and different sectors. International Journal of Advanced Science and Technology, 29(3), 284-303.
There is a need to introduce a camel general insurance policy due to the increased needs to protect camels in the UAE. Such an insurance policy should cover camels against sickness, accidental loss of the camel arising from fire, theft, and legal liability arising out of the camels damage to properties belonging to third parties such as crops.
In the UAE, camels are valued, and people take care of the animals to ensure that they are safe and healthy. The camels have values in the society. The people also attach an economic value to the animal. Camels can survive in the harsh desert conditions, and this aspect is suitable for areas which are dry. The camels are used for transport.
They also supply milk and meat. Camels are also used to pay dowry, and they are sources of pride for the people in the UAE (Salem and Staff Reporter, p. 1). Today, they are also used in sports, such as racing (Zacharias, para. 6). In this paper, the author provides a proposal that Dubai Insurance Company will establish an insurance policy called Albaaeer. The policy will provide cover for the upkeep, racing, and breeding camels in the region.
New product development plan for selected opportunity
Pricing
In all businesses, a product is brought to the market after passing all stages of full new product development process. Pricing is the last stage in the new development process.
The other stages, starting from the first one, are as follows; idea generation, idea screening, concept development and screening, business analysis, beta and market testing, technical implementation, commercialization and lastly the new product pricing. As a marketing manager, developing a strategic plan in setting the price of the Albaaeer is very recommendable. The pricing strategy will consider the all the costs and the profit margin of the product.
A marketing manager should focus on the current and the future situation of the market of the Albaaeer and not historical to ensure that the right price is set for the product. A mind that thinks of today and tomorrow will help marketing managers to set a strategy of pricing that will help make profits today and tomorrow. A mind that thinks of the experiences will obviously drag the marketing manager into setting prices to recover the costs that were incurred long time ago (Tailan, and Liu, 695).
The pricing process will consider the fact that the product is new and that customers will not be willing to buy the product because they have not used it before. Marketing managers should take immediate actions in regards to how the buyers respond to the prices that have been set for the Albaaeer. The prices will be tested to test the response of the customers.
The managers should develop pricing strategies that shift with the shift of the price sensitivities of buyers. The insurance products have a price-elastic demand, and this indicates that the price of Albaaeer will be determined by the demand in the market. In case the demand for Albaaeer increases, the price will automatically be increased, and in a situation where the demand of the product decreases, the price will also decrease (Tailan, and Liu, 697).
Once more, while developing a pricing strategy in planning for the new product development, in this case, the Albaaeer, marketing managers should study the competition of other products or other organizations selling the same product. It is more preferred for one to be on a creative plane while doing business than being on the competitive plane.
When there is no otherwise, the marketing managers in a competitive environment are advised to be alert to the market trend, but not copying what the competing organizations are doing. The marketing managers of the organizations selling Albaaeer in the UAE have to plan their own pricing strategy and not copying the pricing strategies of their competing counterparts.
The pricing strategy will also consider the taxes that have been imposed by the government. The taxes account for the price of a product and should be incorporated in the price of the product. The government requires all businesses to pay taxes, and the Albaaeer insurance product should incorporate the tax component.
The pricing of the product will be a cover of 50,000 to 1 million Dirham. It will be tailor made in that one can pay as low as 500 Dirham per month. This is to ensure that those who are in the low end market can afford to pay for the product and provide cover for their camels. This is also because the price is one of the ways that the company will be able to receive revenue from the sales made in theoretical term it is one of the most important determinants of the perception of customers when they are making purchases (Salem and Staff Reporter, 1).
The marketing managers of Albaaeer organizations too, while planning for the new pricing strategies for the product should think of the product life cycle. As I said earlier, it is wise to set a pricing strategy that has its focus on today or rather the current and the future situation.
The product life cycle clearly elaborates that towards the Decline phase, the prices of products start to go down due to the market saturation with the products and the increase of price sensitivity with the increase of products knowledge. The marketing managers of the Albaaeer organizations should set pricing strategies that are flexible.
Promotion
Promotion refers to the process of creating awareness about the products in the market. This can be done through advertising, television, social media, and other communication media.
Promotion increases the knowledge about the products in the market. Companies also educate customers about the products through promotion. The companies use promotional strategies to encourage potential customers to try the new products in the market. Therefore, promotion is an important tool when a new product is introduced in the market (Tailan, and Liu, 698).
The product promotion will entail advertising the product to ensure that customers are well aware of its existence in the market. The advertisement will be done TV, radio, social media networks such as Facebook, Twitter and MySpace and also on the companys website through a link that will enable the user to find more information about the product with regard to price, cover provided, extensions of the cover and those things that are not provided in the cover. We also use brochures that will be placed at strategic points on the premises of the business to ensure accessibility by the customers.
The physical product promotion will entail the use of bright and attractive displays on TV with appealing colors. We have chosen green to be our theme color as it communicates trust, nature and calmness and more so because it is a product covering animals- camel (Albaaeer). The cover of the policy with regard to the sum insured premiums to be paid per month, and the benefits that will accrue to the policyholder will also be provided.
On realizing that people like free things, the marketing manager of the organizations dealing with Albaaeer and Albaaeer products can organize an event to give away products with an aim of drawing and attracting customers who could at first been disinterested. Organizing promotional events helped our organization to send a press release about our products. We also got a chance to let the public know, through the use of the local newspapers.
The use of business cards as a way of promoting Albaaeer products can greatly influence the buyers in the UAE in a wide range. Handing out of printed promotional items can help an organization to venture into the interiors in marketing its products. Another way of using promotions in new product development is by offering samples to people with great influence whom after using or reviewing the products offer back a positive response which in turn help to convince customers to try the products.
The other tool for product promotion for new product development is the use of testimonials. In the the UAE, Albaaeer organizations can collect testimonial from customers who have used and got satisfied with the products, that is, the camel itself, its milk or meat. The testimonials from customers can greatly help to retain and influence other potential customers who trust their opinions into trying the product (Jaffer, 4).
All the factors that will influence the consumer behavior towards the newly developed product
There are several factors that will influence consumer behavior towards Albaaeer insurance policy. Consumers purchasing decisions are influenced by cultural, social, personal and psychological factors. Clients who will opt to buy the product and those who will not buy it are influenced by different factors.
Many of these factors are beyond the control of the marketers, and they are unique in term of the environment from which one was born and grown. First, cultural factors are influenced by what one was taught from a young age up to maturity. These teachings range from family, school, religious institutions and society at a large. The basic values that shape individuals tastes, preferences and perceptions teach in these institutions.
For some, they have been taught that insurance is not important especially for animals like camels. For others, due to their religious beliefs insurance is not crucial especially among the Muslims. For others because they do not keep camels due to their own personal reasons, they might not just find it necessary to purchase camel insurance policies (Al-Mutawa, 345).
Social factors that influence the consumer behavior are reference group, family, social roles and status. The reference group is the group of people whose opinions are considered by a member when making purchasing decisions.
The group can also affect ones personal life or profession. These groups are can further be divided into family, friends, neighbors, and coworkers who interact with the individual on most occasions. For those clients who belong in a social group that believe in camel insurance or those who keep these animals are most likely to purchase the product compared to those who are not (Strazzieri, et al. 435).
Other groups like religious groups and professional associations affect also ones buying behavior depending on the beliefs of the group concerning insurance. Family members also have a strong influence on ones purchasing decisions. People from different families tend to be different in terms of their tastes and preferences that they value since childhood regarding insurance.
Parents also provide the first orientation for their kids and in most cases for these kids whatever their parents used to like will be their likes and vice versa. Consumers also will be influenced to buy or not depending on their roles and status in the family either as: a husband, wife and first male son. The status that one has defined roles and ultimately the buying decisions (Strazzieri, et al. 436).
There are also personal factors that influence consumer behavior such as life cycle, occupation, economic circumstances, lifestyle, personality and self concept. People undergo various life cycles in life that influence their purchasing decisions for the product. For those who are single, they most unlikely to own a camel compared to those who are married because they have less needs compared to their counterparts. Due to these variances, their needs for camel insurance policies also vary (Foxall, 63).
Consumers aspirations to purchase a camel insurance change according to the prevailing economic condition changes. As the economic conditions undergo various cycles with time so do their financial ability to purchase this product change. Their occupation also influences their lifestyle, which eventually influences they need to purchase camel insurance. For those in an occupation that has a high pay, they are most likely to purchase camel insurance compared to those who are in those occupations that do not pay well.
Lastly, consumer behavior is also influenced by a persons psychological factors which include motivation, perception, learning, beliefs and attitudes. Different people tend to have different inner motives and a perception that satisfies certain needs in life. People will buy camel insurance because of that inner motivation to do so and satisfy the need of averting the financial loss that comes with not insuring.
For those consumers who perceive camel insurance to be an important means of avoiding loses, they are likely to purchase the product compared to those who do not. Learning about human behavior, which comes from experience, also influences consumer behavior of this product.
For those people that have a good experience with camel insurance, they are most likely to purchase compared to those who lack the same experience. Beliefs and attitudes that consumers have will also influence their buying decisions. Those that believe that camel insurance is important and have an optimistic attitude towards the same are most likely to purchase compared to those who do not (Miniard, and Cohen, 171).
Three possible problem situations the consumers might encounter in the delivery of service and how I plan to fix each problem
Problem by adopting a new product in the market
The company will encounter the problem of adoption of the new product. The adoption of new products varies with customers. There are customers who are early adopters.
This class of customers has the characteristic that new products are easily adopted. However, there are laggards who do not accept new products easily. They wait until a product is well established in the market. Albaaeer is at the introduction stage of the product life cycle. At this stage, The product is new in the market, and most of the customers are not aware about the presence of the product.
At this stage, the company sells the product to early adopters. These are the customers who are ready to use the product without prior knowledge. The product at this stage requires to be promoted intensively so that people can know the existence of the product. At the introduction stage, the laggards are not willing to test the products because they do not know anything about the product (Saaksvuori and Immonen, 166).
Therefore, the company will encounter the problem of laggards because such customers will not be ready to accept the Albaaeer. To deal with this problem, the management should develop intensive promotion campaigns to educate all the potential customers about the new products. This will be done through online channels, televisions, radio stations and newspapers among other media.
Most people in the UAE are not aware about insurance and customers view insurance products as a scam to con them money
Insurance in the UAE has not penetrated to a large extend because most people are not aware about the existence of insurance policies. However, people in the country have accepted life-insurance products, but they are not ready to take retirement insurance products. The low rate of penetration could also be because of very few global insurance companies operate in the UAE and there only a limited number of tailored products (Chaudhuri, para. 6).
Most insurance companies in the region offer products in motor insurance because it is mandatory. The other products have not been properly marketed. Most of the products have not been offered to the customers.
People have bad perceptions about the insurance products. The bad perception was created by former insurance companies which stole money from customers. The companies could fail to pay the customers their dues when risks, which are issued, occurred.
This created apathy among customers because genuine cases were not compensated. Although insurance penetration in the UAE is the highest in the Middle East, experts say it still is relatively low compared to mature markets (Chaudhuri, para. 1). The company should educate people about the importance of insuring camels. Intensive promotion should be conducted to ensure that people are aware that the company does not aim at conning their money.
Cultural problems
Customer perception differs from one community, society or nation to another due to the cultural differences that exist between them. If not properly strategized, starting an organization in an environment with cultural difference has very high chances of failing. A situation may arise where lets say, the customers are so into the existing product and may not need another that is so satisfying. The UAE is a combination of many Arab countries, showing that there are many different cultures with different desires.
In such a case, marketing managers should do research deep down the roots to know everything about the market and to forecast. It is wise for the foreign marketers to invest in places where there are cultural exchanges to avoid cultural conflicts. The cultural systems in the UAE have restricted the penetration of insurance companies. The young people are not ready to take insurance policies. In addition, the people have the perception that insurance is an extra expense rather that a protective cover.
This aspect hinders insurance companies from selling their products in the UAE market (Chaudhuri, para. 10). The company should promote a culture of ensuring all assets among the people in the UAE. This can be achieved by encouraging and educating people about the importance of having insurance cover. The company can liaise with the government to educate people on the importance of having insurance policies.
Conclusion
In the process of new product development, marketing managers should do thorough research before they bring products to the market. They should be very innovative in all the eight stages of new product development and keen to the customers responses towards all the actions they may undertake in order to satisfy them.
Many businesses fail due to poor strategic planning in product development. Camel insurance is an important product that has a high potential of acceptance from customers in the UAE. The introduction of such product should be done in a strategic manner because the people in the UAE have not accepted all insurance products in the market.
People in the region have taken motor insurance because it is compulsory, but other insurance policies have not been readily accepted. Therefore, introducing the Albaaeer will face some challenges. The company should provide attractive prices because the product has an elastic demand. In addition, intensive promotion should be conducted to ensure that all customers are aware about the existence of the product.
Works Cited
Al-Mutawa, Mohammed A. J. Factors Influencing The Consumer Process In the UAE Society. International Sociology 11.3 (1996): 337-357. Web.
Chaudhuri, Ritwika. Insurance penetration. the UAE Digest. Web.
Foxall, Gordon R. Social Factors In Consumer Choice: Replication And Extension. Journal Of Consumer Research 2.1 (1975): 60-64. Web.
Jaffer, Sohail. Islamic Insurance: Trends, Opportunities and the Future of Takaful. London: Euromoney, 2007. Web.
Miniard, Paul W., and Joel B. Cohen. Modeling Personal And Normative Influences On Behavior. Journal Of Consumer Research 10.2 (1983): 169-180. Web.
Strazzieri, Alain et al. Societal Development And Family Purchasing Roles: A Cross-National Study. Journal Of Consumer Research 9.4 (1983): 436-442. Web.
Tailan, Chi, and John Liu. Product Life Cycle, And Market Entry And Exit Decisions Under Uncertainty. IIE Transactions 33.9 (2001): 695. Web.
Zacharias, Anne. The rich history of camel racing. The National. Web.
Social insurance programs are more effective since they provide social security for the basic income to those in their later years. Through social insurance programs, the fired personnel can be given unemployment insurance after they lose their job. These programs are more helpful to the citizens since they offer high benefits to humans associated with higher take-up rates. They have reduced poverty rates since they assist in strengthening purchasing power and raising poor living standards. Workers and citizens over 65 are provided with Medicare, which gives low health costs insurance (Noghanibehambari & Engelman, 2022). Therefore, insurance is more effective as it helps the poor and the aged to access essential services offered in their country at a lower price.
Even though the program is effective, it is affected by political and social-economic forces. Regarding social economics, there has been a high growth rate concerning the existing program. The growth rate promotes poverty since many of the citizens are unemployed. As social insurance depends on the taxes provided by the citizens, it has been more challenging since most of the citizens are unemployed. Unemployment decreases the payroll tax fund, the common funding source of social insurance programs (Chodorow-Reich & Coglianese, 2019). The decrease meant reduced social security and Medicare since the revenue in the federal government was affected. As a result, the government may be unable to offer insurance to the employees and employers even though they contribute wages as it experiences decreased resources due to social and economic factors.
According to political forces, for a member to apply for social insurance, an individual should qualify for the set options. The government established some mandatory whereby they consider who is eligible for Medicaid insurance program. Considering the lack of employment, the government considered raising the corporation tax for all employers and employees (Chodorow-Reich & Coglianese, 2019). Due to the low salary most citizens get, these regulations seem challenging. The decision made by the government of law in raising the tax has increased the cost of living, making it hard for the citizens to survive. Political forces create struggles for the citizens as they cannot settle the challenge.
Health care is one of the most important parts of the U.S. social system (Kovner & Knickman, 2008). Yet, many perceive the system as vague and not accessible to the poor. With millions of U.S. citizens uninsured, health care cost escalating, access to health care difficult, and health disparities eminent in this country, health care has become a political issue (Sanders, June 8, 2009). Roger Vinson, a U.S. District judge, recently ruled out the Affordable Care Act stating that its mandate of making all U.S. citizens obtain health insurance is unconstitutional in that insurance is a privilege, not a right.
Alex Quitiquit in his response article, Health care: a right, not a privilege, published in The Daily Utah Chronicle on February 8, 2011, disagrees with Roger Vinsons judgment on the basis that affordable and proper health care is a constitutional right and this would only be achieved through making insurance a right. This paper, therefore, draws its discussion from the views of Quitiquit. Just like Quitiquit (2011), I believe health care is a right, not a privilege. U.S. citizens can only have equal access to appropriate health care if insurance is made a right where all citizens must obtain medical cover.
Let us be realistic. Our health care system today is far much worse than it was 20 years ago. Whereas some citizens receive excellent health care, others do not (Kovner & Knickman, 2008). Millions of U.S. citizens are either uninsured or under-insured (Sanders, June 8, 2009). Millions of citizens have no access to a medical home; deaths from preventable diseases are on the rise because health care has become inaccessible (Kovner & Knickman, 2008).
Should we still pretend that our health care is doing fine? No. As politicians continue with the debate on the Affordable Care Act, we should ask ourselves this question, should health insurance be a right or a privilege? I believe every U.S. citizen should be entitled to the right to medical cover. Unless insurance becomes a right and every citizen obtains adequate medical cover, millions of U.S. citizens will continue dying out of preventable diseases (Sanders, June 8, 2009).
With many U.S. citizens uninsured, the government continues to spend more on health care than most countries whose life expectancy is much higher than the U.S. (Kovner & Knickman, 2008; Kronenfeld, 2002). Despite the good quality of health care, costs are very high making health care unaffordable to the poor. The government should indeed look for means to make health care affordable and accessible to all. Nevertheless, how can we achieve this? The majority of U.S. citizens do not have medical coverage for many reasons; some complain about the cost of sustaining a medical cover (Kovner & Knickman, 2008).
The government should work towards making health insurance affordable. Affordable Care Act would have been the most appropriate health reform to ensure that U.S. citizens purchase an insurance (Kovner & Knickman, 2008; Kronenfeld, J. 2002).
However, unless the medical cover is made affordable, it would be difficult for the poor to obtain any adequate medical cover. It should be the duty of the government to regulate health insurance and ensure that private insurance companies do not exploit citizens (Kovner & Knickman, 2008). As Quitiquit (2011) and Sanders (2009) maintain, health should be a right, not a privilege. Besides, one may obtain insurance, but still lack access to health care given the existing disparities. The government should not only think about affordable health but also make sure that health care services are readily available to its citizens. Health care is a right, not a privilege
References
Kovner, A. R., & Knickman, J. R. (Eds.) (2008). Health care delivery in the United States, 5th Edition. New York, NY: Springer Publishing.
Kronenfeld, J. (2002). Health care policy: issues and trends, volume 759. Westport, CT: PraegerPublishers.
Quitiquit, A. (2011). Health care: a right, not a privilege. The Daily Utah Chronicle. Web.
Indemnity dental insurance is one of the several insurance coverage schemes that can be accessed by the American citizens in need of seeking oral health care (Manski et al., 2015). Indemnity dental insurance is a fee-for-service plan, meaning that individuals who subscribe to this type of plan must pay for their dental procedures in full and then submit a claim to the insurance provider (carrier) to be repaid or reimbursed (Okuji, 2016; Pati, Shea, Rabinowitz, & Carrasquillo, 2005). The carrier processes payments to the plan member or to the dentist only after the insurance entity receives and reviews the dentists bill. The present paper undertakes to examine the pros and cons of indemnity dental insurance, before discussing the reasons why the dental profession still promotes indemnity insurance as the best type of insurance for dentistry.
In discussing the pros, it is important to note that the indemnity dental insurance provides members or patients with the freedom to visit any dentist of their choice without the usual restrictions that characterize managed care. Another advantage is anchored on the fact that most indemnity insurance plans typically cover a large portion of the patients dental bill. In cons, research is consistent that individuals under the indemnity insurance coverage pay more out of pocket than those under managed care insurance plans because the provider reimburses a proportion of the total cost for a given type of dental process (Manski et al., 2015). Additionally, individuals covered by indemnity dental insurance plans end up paying more for dental services offered as the insurance provider places a ceiling or top limit on how much should be reimbursed to the patient or the dentist for a particular type of dental procedure using the concept of usual, customary, and reasonable (UCR) fee (Okuji, 2016). Other disadvantages are nested on the imperative requiring patients to pay for dental services in full before sending a claim form to the provider for reimbursement, the mismatch that arises when dentists attempt to interpret what is usual or reasonable , and the standard reinforcing a waiting period before the insurance provider pays for specific types of dental processes (Okuji, 2016; Pati et al., 2005).
Drawing from the discussion on pros and cons, it can be argued that the indemnity insurance plan is beneficial to dentists in terms of providing them with the capacity to determine what is usual or reasonable in the reimbursement dynamics. It is beneficial to employers as they are not expected to use their financial assets to cover for the dental processes done on employees as the latter are expected to pay for the services using the out-of-pocket mechanism. Lastly, it is beneficial to employees as it provides them with the capacity to seek dental or oral health services from dentists of their own choice, hence increasing dentist-patient relationship and optimizing the quality of services provided (Okuji, 2016).
The dental profession still promotes indemnity insurance as the best type of insurance for dentistry because it does not oblige the dentist to enter into any agreement with the insurance provider. Additionally, this insurance modality is preferred because the dentist is not held at any specific fee and is free to choose the type, intensity, and frequency of treatment (Okuji, 2016, p. 7). Lastly, indemnity dental insurance plans are preferred by the dental profession due to their capacity to provide dentists with the opportunity to not only price discriminate among patients under the usual and reasonable fee framework, but also to use the fee-for-service structure to collect fees for services provided on a per-piece basis (Okuji, 2016).
This paper has examined the pros and cons of indemnity dental insurance, the benefits accruing to relevant stakeholders, and the reasons why the dental profession still promotes indemnity insurance as the best type of insurance for dentistry. Drawing from the discussion, it is evident that indemnity dental insurance plans have their own distinct advantages and disadvantages relative to other coverage plans.
Life insurance can be defined as the contract between the insurer and the person owns the policy. Some countries include some events like bills and death expenses are included in the premium policy. The insurer is bound to pay some money incase an even happens to occurs. If the insurer enters the contract he pays an annual or monthly amount known as premium. If an event occurs the benefit is paid to the beneficiaries. The insurance only considers the people who are included in the life policy. If any kind of event happens the people who are insured are the only ones who are considered since its a contract between two parties, i.e. the policy owner and the insurer.
The only person allowed to pay for the policy is only the policy owner and he also acts as the guarantee. They dont consider the insurer as being party to the contract since he acts as a participants. In life insurance, the insurer plays different roles compared to the roles of the policy owner. They sometimes seem to be the same but they are totally different. The owner appoints the beneficiary although he is not entitled to the policy. If the beneficially happens to revoke the insurance contract, any changes that comes along must be agreed upon by the beneficiary. This means that the owner has the right to change the beneficiary unless the beneficiary chooses to change or withdraw the policy. The changes might include the cash value borrowing or policy assignments.
In life insurance there are special requirements which are found in it. If the person commits suicide within a given period of time, this type of section is highly considered. If the application is misrepresented by the insured is considered as part of nullification. In most of the states in the US feel that the period of contestability cannot be more than two years. The insurer will be considered to have a legal right to follow the claim relating to misrepresentation and ask additional information before denying the claim or accepting to pay only if the insured passes on within the mentioned period. In life insurance the face amount on the policy is the one that the insurer is paid if he dies and its still the original sum paid by the policy when the policy happens to mature.
In most of the cases life insurance and life assurance always go together. In life any of the events is most likely bound to happen. In life insurance they are only events that are bound to happen e.g. floods, theft, fire they come unexpectedly causing a lot of damage. The events that are covered life assurance they are events that one is sure they are going to happen in future e.g. death.
Types of insurance
Life assurance is basically divided into two categories, permanent and temporary.
Temporary insurance is also known as term insurance; this type of life insurance does not accumulate cash value since it covers for a specified term of years and for a specified premium. The premium is termed as pure as it covers and buys protection in the events of death only. The only major areas which are considered in this term insurance are only the length of coverage, face amount which caters for protection or death benefits and the premium which is going to be paid.
Permanent; this type of insurance remains contact until the policy matures. If the owner is not in a position to pay the premiums on time, the policy becomes outdated or the policy lapses. The law defines that any type of policy cannot be cancelled by the insurer for any reason, not unless signs of fraud are detected in the application. If there is any cancellation there is specific time given which is normally two years. There are three types of permanent insurance;
Whole life insurance; in this type of insurance the cash value is included in the policy guaranteed by the company since they provide a level premium. The advantages of this insurance are that the whole life is guaranteed cash value, fixed and known annual premiums, and death benefits. We can also see that the disadvantages of whole life insurance are that the internal rate of return in the policy is usually not competitive with other savings. They also dont have flexibility in there premiums.
Endowments; endowments are considered to more expensive in terms of annual premiums compared with the rest of the insurance policies. Comparing with whole life or universal life the period of endowment is shortened and it has earlier dates. In this policy the cash value is built up inside the policy. The face amount has the death benefits at a specific age. The age in which it starts is known as the endowment age. The endowment insurance is usually paid at a specific period e.g. 15 years or if the insured is living or dead.
Universal life coverage; this is a new insurance cover which plans to offer a permanent insurance cover which has flexible premiums payments affordable for everyone with quality higher internal rate of return. This insurance has a cash account which is increased by the premium. The interest is paid within the policy and it also recorded and credited at the rates decided by the company.
Accidental death; this is a limited insurance and it only covers the insured when they pass away because of an accident. These accidents might be in form of injury, they dont cover any death that might occur due to heath problems or any type of suicide. The policies are less expensive because they only cover death compared to other life insurances. The benefits are much better because they not only cover accidental death but they also benefit those who have lost their limbs and also their bodily functions e.g. hearing and sight.
Limited-pay; in this type of permanent insurance all its premiums are paid over a specified duration of time. There are no extra premiums which are due to keep the policy in force.
When you come to look at life insurance there are actually two main functions which make it operate fully. They include cash function and mortality function. In mortality function the premium of everybody else covers the death benefits of anybody who die within a given period of time. In cash function age varies meaning that the policy matures and endows the face value of the policy depending on sate and company.
Time value of money
This concept refers to any type of interest that one happens to receive from any kind of payment. This is a present formula which is the core formula for the time value of money. All the formulae are derived from the formula below;
The present value (PV) formula has four variables
PV value at time=0
FV value at time=n
I rate of compounding
N number of periods
Summing the contributions of FV the value of the cash flow you will get the cumulative value
Present value of growing perpetuity if it grows at different fixed rates you easily determine the value at looking at the following formula. There are various qualifications and modifications for this valuation application. Its not easy to find a growing perpetual annuity with a true perpetual cash flow or fixed rates.
When you want to calculate the value of the regular savings deposit in future, you first calculate the present value of a stream of deposits of $1,000 every years for 20 years earning an interest of 7%. (Steven A. Finkler, 1992)
Calculating the value at a duration of 20 years
This formula can be put together into a single formula.
References
Lester William Zartman, Life Insurance, 1914.
Joseph Brotherton maclean, Life Insurance, 1962.
Robert Irwin Mehr: Life Insurance: Theory and Practice, 1977.
Solomon Stephen Huebner, George Lawrence Amrhein, Chester Alexander Kline, Life Insurance, 1935.
Steven A. Finkler, Christina M. Graf, Budgeting Concepts for Nurse Managers, 1992.
Jae K. Shim, Accounting and Finance for the Nonfinancial Executive: An Integrated, 2000.
Teachers have benefits which he will use for pre and post retirement protection. The most commonly used by most teachers is Teachers Pension Scheme which is abbreviated as (NUT). The teachers pension scheme covers all types of members who are in the teaching profession and members benefit when they have reached the age of 65. When a teacher retires he will start withdrawing his pension from the scheme so long he had contributed. However, when he retires pre-maturely or at the age of 55 the cost of pre maturely retirement is paid to the pension scheme by the employer. The pension scheme which is enjoyed by teachers in U.K. is said to be the best in the world for teachers.
The package recognizes two types of retirement ages, the age of 65 which is normal retirement age and 55 which is an early retirement age especially on the issues of illness. This pension is normally payable to the surviving dependants that is, those of opposed sex if the pensioner is dead. It has a guarantee to pay for a dead pensioner amount equivalent to three times the annual salary. This scheme is important to all the teachers and teachers should be read to join this scheme because they are important. This pension scheme helps many teachers because it has a lump sum plus ill health retirement benefit. If one retires on the ground of health then he is entitles to receive his package. It helps teachers to remain healthy and continue producing for the sake of the country.
Social insurance
Every government in the world strives to provide the best quality of health and social services to the citizens so that they can be more productive, hence improve their living conditions and the economy of their country. Each country must create, conserve and build up the intellectual, moral and physical vigour of its active generations and then prepare way for its future. Social services are a major component which must be included in the budget and should be allocated more funds as they are part and parcel of every citizen. Britain has put much effort and resources to ensure that there is proper management of its social services and has introduced quality standards that ensure there is improvement in service delivery with hope that everyone will be happy of these new changes (Brown, I978).
Social services can be defined as the provisions made by the governmental or voluntary efforts to meet income maintenance, medical care, housing and recreational needs. Provision and maintenance of social services is the major responsibility of the government and the citizens in turn have to make proper use of these services. These provisions must be of high quality because they will have an effect to every citizen in the country. Social services are an important feature of the British social life, as there is a commitment by the government and other stakeholders to manage them well so that the country can have a healthy, active and productive population. In 1935, the British government increased the social service expenditure to two million pounds; this was 53% of the total expenditure granted by the parliament. The expenditure was increased because of the prevailing conditions at that time. The failure to provide satisfactory premises with the necessary range of other professional skills and administrative services also held back the development of health care (Willcocks, 1967).
Health care has long been considered an essential element of good medical care. More than fifty years ago the Dawson Report (Ministry of Health) advocated setting up a national network of health facilities in the country Most importantly in 1946, the National Health Service Act made it a clear responsibility of local authorities to provide, equip and maintain buildings for general services, medical, dental and pharmaceutical. The government has spent a lot of money in improving and maintaining the social service sector in the country in order to cope with the changes and demand for them by the citizens. Some of the Social services provided by the government of Britain include;
Unemployment insurance
Compulsory state insurance
Compulsory health insurance
Provision for pensions
Workmans compensation
Benefit scheme for employers
In Britain, the health service was provided by the government, the medical practitioners and the private bodies. The national health policy was started in 1912 and covered about half of the British population by 1914. Different authorities administered maternity and child welfare as they were thought to be more important than others. However there was no good coordination in these schemes before the Beviridge plan. The plan assumed the comprehensive health service for every citizen irrespective of the ability to pay. The medical treatment was not to depend on a persons ability to pay but should be paid by the community. With this plan, it set a pace for more radical changes in the health sector, with the government implementing some of the recommendations put forward by Sir Beviridge.
The British government is aware of the changing approaches to management in health and social services. Interventions are being made by the government to improve quality of service and the citizens are happy of the new changes. There have been drastic changes and improvements in the health sector in training and re-training of personnel in health sector on the new ways of delivering quality services to the people. There has been a change from provision of social to a few selected groups of people to catering all the citizens of the country, this policy is people centered whereby the citizens are involved in approving whether the quality standards are of high standards and whether they are satisfied with them (Williams and Anderson,1979).
Perhaps the most obvious way to demonstrate the social significance of health is to document the ever increasing acceptance by the society of responsibility for healthcare. This pattern of the development of health care services demonstrates clearly the awareness of the government of the social consequences of ill health. There has been some social change and the development of collective responsibility for the provision of health care. The health sector has a monitoring unit which keeps check on the necessary areas in order to make sure that the quality standards are maintained. With the increasing number of population since World War II, the social services being provided by the government have strained and the government had to change some of its policies so that they can cover the growing population.
The government has gone a step ahead to create awareness on health issues to the public, who have taken it positively, and this has been done through public lectures, teachings through the radio, television, Newspapers and journals. The health services nowadays are of high standards and quality as people will only go to health care services in facilities where the service is of high quality in terms of treatment and professionalism. The medical facilities have been improved and continue being improved. At the same time, new facilities are being constructed and equipped with modern facilities, enough medicine and staff to cater for the increasing needs of the clients. These facilities are spread countrywide so that all citizens can be able to access health services. The provision of health services and other health services is a right to every citizen and the government and the ministry of health has the sole responsibility of work hard to satisfy the needs of its citizens without any fail, favour and blame. The government has taken a step ahead of identifying areas that need special attention in health matters and taken the necessary steps.
The medical / health fraternity has a board known as the British Medical Association which keeps check on all health related matters in the country. It ensures that all the medical personnel are qualified to work and whether they follow all codes of ethics while at work (British Medical Association, 1976). This is very important because previously there have been serious cases where unqualified people who pretend to have qualified as medical practitioners have resulted in administering wrong treatment to patients resulting in death. This body cracks on these quacks countrywide to get rid of them so that the health sector can remain a respectable and more professional in handling its affairs.
The management teams in the health institutions have the responsibility to make sure that their staffs offer services of high quality to their clients and they must be in a position to brief the health ministry if they are requested to do so. The management has also been trained on managerial and administrative skills, public relations and financial management o that they can be in a position to run their institutions without any difficult. The government and the Ministry of Health and other major stakeholders in the health and social service sector are working together to ensure that the managers in the health sector are getting enough training, whether inside or outside the country so that they can be in a position to become efficient, disciplined and effective managers at their work place.At the same time, these mangers are urged to identify areas of training which needs to be considered in future. This effective training and implementation of what has been trained has resulted to positive and quality service delivery to the public. The public outcry for better and quality service delivery has been minimized though there are few loopholes which have to be filled before the full attainment of the objectives of the health sector. The high performers whose work has generally improved and appreciated by the public are handsomely rewarded by the government for their good job; the same applies to the rest of the staff. It has also come to be increasingly recognized that mangers need to cooperate with others in carrying out these managerial functions. The opportunities created by working this way will be beneficial as it could be easier consult each other when issues arise at managerial level.
The personnel are being paid well by the government and the private sector. This motivates them to work harder and at the same time offer quality services to the clients. A clear turning point in the modernization in the general practice of health care services came with the British Medical Association General Practitioners Charter in 1965, whose proposals became the basis for successful negotiations with the government on pay conditions of work. Besides introducing increased basic levels of remuneration, the charter also became the basis for improvements in practice organization up to now (British Medical Association, 1977). There has been until recent years, a lack of suitable medical education for health care at undergraduate and post graduate levels. The Royal College of General Practitioners was established in 1952 and has done much to enhance professional development and education for general practitioners. There have also been developments in the training of other professionals for work in primary health care, although progress has not been rapid. This has led to high professionalism in the health sector and has necessitated competition among the practitioners who are competing in offering the best services ever to their clients. A survey was carried in 1981 to find out from the general public whether they approve and appreciate the health care provided to them. It was found out that 72% appreciated and liked the efforts being made by the government in service provision and management of these health institutions. The other remaining 28% were hesitant to give answers but most of them said the services had not improved and if it had improved, it was meant to benefit the rich only.
There has been an influx of medical personnel from outside the country who come to seek jobs in the country because of better remuneration packages and better working conditions in the country than where they come from. This has necessitated the government to act tough on those who come to the country to work in case they make life threatening mistakes when handling the patients. There have been cases where those seeking jobs the country may have committed mistakes in their country, and so they have to prove that they are genuine professionals who are committed to offer better and quality services to the people. Also the number of patients being brought into the country for further medical care is rising steadily. This is because of the high quality standards of medical care, good quality service, modern medical facilities and highly qualified medical personnel. This has led to competition as there are an ever increasing number of competitors in the health sector offering the same service. What people are interested in is quality service and if that service satisfies them. Some health facilities have had many clients because of their good service while some have been deserted because of bad services.
In order to keep maintaining these high quality standards in service delivery, more resources will have to be set aside for training the staff and offer them other incentives so that they will continue working with motivation and this will discourage them indulging themselves in unprofessional practices that may threaten their profession and the life of their clients. With these drastic changes in the health sector, there have been great improvements and the user is happy about the quality of service being offered to him / her. The high standards of professionalism have been maintained hence offering good healthcare services to the citizens. Some of those medical personnel who have been practicing illegal have been deregistered, fined and charged in court for the offence of offering substandard health care services to the people.
The health sector has also a tribunal where those of its members who have been accused of wrongdoing, can face this tribunal and defend themselves. It has the powers to punish, reprimand, suspend, fine and expel members from the medical fraternity. This body has it committee members drawn from all sectors of health in order to make a balance when handling cases of its members. There are a set of code of ethics which the medical personnel are supposed to use and follow while they are on duty. They act as guidelines to all of them and if one breaks one of the, he /she is aware of the consequences that will follow. These of ethics are reviewed with time if there is need to change and are amended with the full agreement of the members.
Medical insurance
Teachers should also cover and also benefit from medical insurance offered by their government. Medical insurance is a legally required benefit which employers are supposed to offer their employees. The resources and bargaining power play a major role in determining the quality of healthcare insurance that a teacher will be offered. Most employers complain about the cost of insurance although some of them have found ways of cutting insurance costs.
Pension and health benefit programs
Pension and health benefit programs are two traditional benefits for the teachers, provided by the government and companies. Hudson brings out the importance of pension plans and presents that strict control over the designs of pension schemes should be reduced such that government and firms might provide lucrative pension plans for the teachers. A proper balance is restored between their cost and their importance to the human resource management segment of an education system (Hudson, 2008).
Teachers are giving more importance on the educational assistance, home insurance, automobile insurance and other banking services. They also require some flexible benefit plans. The government and private school administrators are concern about the real cost and effectiveness of these benefits for the teachers. By the flexibility plans of benefits for the teachers, they can purchase benefits in exchange with money. The benefits of the education system should be credited to all teachers involved. This helps to increase the efficiency, productivity of the teachers. It also helps to improve the quality of output and reduce the cost. This will encourage teachers to work as a team. If a team or group is getting incentives from the school or government, it will be called as gain sharing. This helps to have a sustainable and continuous development of education. If the school is able to reach the target, then the monetary gains will be shared amongst the teachers of the team. This entire program is self-financed by the school. After the 21st century, the schools management took the responsibility to provide these benefits to the teachers. Developing trust is a difficult task for the teacher employers. This trusting relationship improves the efficiency and productivity of teachers. Introducing these benefits for the teachers, the employers create a suitable working environment for the teachers. As a result, it becomes a two-way advantage from the sides of teachers and the education system. Education administrations conduct several effective training and retraining processes for the teachers to increase their efficiency level, which is helpful for schools. Education administrations are responsible for implementing and maintaining the ethics of education. This increases the ethical standard of the schools and its teachers. Benefits for the teachers can be exercised as monetary compensation to teachers (Borgardus, 2004). Teachers may have different reasons for monetary requirement. Some teachers want to keep their children in baby-care education system or some teachers want monetary support for childrens higher studies. Therefore, the requirement purpose may be different but the requirement is equal for each teachers.
Deterioration of Teacher Benefit Plans
Healthy insurance companies are in a process of terminating some services because of financial difficulties being experienced in the world today. According to Munnell et al, there are four reasons behind this action of large healthy companies to reduce workers total compensation in the face of intense global competition, to cut back on pensions in the face of growing health benefits to maintain existing compensation levels, due to the market risk, longevity risk and regulatory risks involved in benefit pensions and finally due to the due to the enormous grown in CEP compensation (Munnell et al, 2006).
Paula Bailey suggests that it would be better for both employers and employees to accept reduction of benefits rather than reducing pay as a surviving measure. When an employees pay is reduced, Bailey says that some of the benefits linked to pay will be affected such as pension benefits. In case of defined benefit schemes, there would be reduced pension benefits for the employee and for defined contribution schemes a cut in pay may lead to a corresponding cut in the contributions. When the benefits are non-contractual, Bailey says that they can be withdrawn or reduced without the permission of the employee. And these may include free meals, refreshments, prohibiting first-class travel, imposing limits on expense claims, or reducing non-guaranteed overtime. When the benefits are promised to the employees by contract, then, employers can make some changes in the benefits without violating the contract. It would not be advisable for an employer to reduce or withdraw payment when the terms are in the form of a contract. In such cases, the employees consent is very important to implement any change in benefits. But if the employees resist the move, then, employers do have the power to impose the changes but they must ensure they have sufficient reasons to impose the changes, have evaluated things from the employee perspective and tried to arrive at a consensus. It is important that the changes have a business rationale to them (Armstrong, 2006).
Teachers Health and Security
Health and security of teachers and the human resource management cycle plays a vital role to observe a sustainable development in the education system (Bratton and Gold, 2001). If an education system can provide health and other security to the teachers, they will provide a sustainable development through remarkable improvement in work efficiency. There is a chain system between the health security from the education system, improvement in health condition of teachers, increase in work efficiency and increase in productivity and sustainable development of the education system. The World Health Organization (WHO) took the initiative to make people aware about their health and medical security. It was necessary to change the traditional system of providing health and other security for the teachers. Insurance companies also take part in teacher compensation management. This helps to minimize the staffing reduction (Mathis and Jackson, 2008).
The Education administrators should incorporate these schemes in health security plans for the teachers. This will reduce the risk and uncertainty of teachers health condition. Better health condition provides better and efficient future generation. Therefore, it is very important to get sustainable development in education system and also the future generation. The effect of teachers health security is a long-run process for the education system. Healthy working environment benefits the education system and its teachers. This helps to maintain the link between the education system and teachers to get sustainable development
Bargaining Strategy on Salary Increase
Collective bargaining refers to the negotiations between labour union representatives and employers/management to determine terms and conditions of service. Labour-management negotiations may be carried out by the employer or by professional negotiators appointed by the employer. Examples of professional negotiators include peace negotiators, hostage negotiators, diplomats, and union negotiators. The commonly negotiated issues between labour unions and management are employment terms such as salaries, terminations, promotions, transfers, and working hours, day-offs, health insurance, and annual leaves granted to workers (Storey, 2007).
Collective bargaining helps employees and employers to mutually agree on conditions of employment. In relation to salary, the negotiations aim to establish a mutually agreeable rate of payment to the workers. In most cases, workers unions want to secure contracts for their members thereby forcing them to enter salary negotiations with employers. It is therefore imperative upon the employer to put in place strategies that will result into such an agreement between the company and the labour unions. This paper explores the available collective bargaining strategies, tricks, and models that can be used by an employer to handle a salary increase demand by labour unions (Wolper, 2004).
Conclusion
The Teacher supporting plan managers are also known as the teacher welfare managers as well as the worklife managers. They are accountable for a wide range of curriculum to improve teacher security and the wellness and recovery of work-life balance. Teachers certainly play a fundamental role in any given society. This is because any human society is naturally expected to grow and develop. While growth takes many dimensions, intellectual and moral growth is part of that fundamental process of maturing. This however would not be possible without the integration of teachers in the process. As such, it is not possible to get a single professional who did not go through the hands of a teacher. It is true that the managers always do not have the full perception on their teachers routine. A 360-degree response can assist the managers to keep away from any bias, and in getting a diverse standpoint on their teachers presentation and a better identification of the areas that need progress. Teachers frequently discount pessimistic responses in the form of just your opinion. Authenticating criticism by gathering them from manifold, convincing resources can construct it in a more objective shape and increase its force. These propositions may be counted as the ideals for a proper orientation of a managerial task in the sector of human resource management (Bailey, Jane & Agnes, 1978).
Reference List
Armstrong, M. 2006. A handbook of human resource management practice. New York: Kogan Page Publishers.
Bailey, P. 2009. Benefits cuts may be a better solution than pay cuts. Personnel Today, 2009. Web.
Bailey, P., Jane G., Agnes M., I978, The Social Context of health, The Aspects of Social Policy, London.
Borgardus, A. 2004. Human resources jumpstart. London: John Wiley and Sons.
Bratton, J., & Gold, J. 2001. Human resource management: Theory and Practice. New Jersey: Routledge.
British Medical Association. 1976. Sharing Resources in England; Report on Resource Allocation, London.
British Medical Association. 1977. Evidence Submitted by the British Medical Association on the National Health Services.
Brown, R. I978. Health Reorganization. London: MacMillan
Hudson, R. 2008. Has regulation killed off the defined benefit scheme as a cost effective tool for human resource management? New Jersey: Routledge.
Mathis, R. & Jackson, J. 2008. Human Resource Management. New York: Cengage Learning.
Munnell, H., Golub-Sass, F., Soto, M. & Vitagliano, F. 2006. Why are healthy employers freezing their pensions? Center for Retirement Research, Issue in Brief. Web.
Storey, J. 2007. Human Resource Management: A Critical Text. New Delhi: Cengage Learning.
Willcocks, A.J, 1967. The Creation of the National Health Service, London.
Williams, A. & Anderson, R. 1979. Efficiency in Social Services. London. Oxford university press
Wolper, L. 2004. Health care administration: planning, implementing, and managing organized delivery systems. New York: Jones & Bartlett Learning.
The numbers of risks that private homes face is immense hence making it appropriate for many with private homes to insure their property. The type of insurance that covers private homes is normally referred to as a homeowners insurance or property insurance (Gron, 1994). Home insurance is very popular in the real estate industry and it covers both property and liabilities. Those people with private homes are assured of compensation incase of any losses in the territory of the policy (Jaffee, 1997). Many insurance companies have been experiencing an increase in the number of people seeking home insurance due to the unpredictable nature of the contemporary world. This paper will discuss the contractual components of a home insurance policy together with its general contents and coverage.
The Home Insurance Policy
The home insurance policy is a detailed contract that clearly stipulates all the things that qualify for compensation and those that do not qualify. It is very important to understand the underlying contract sections before purchasing a home insurance policy. A home owners insurance policy is categorized in two parts namely the home Insurance Property Protection and the Home Insurance Liability protection (Jaffee, 1997). The property protection part is divided in into four divisions that include dwelling, other structures, personal property and loss of use. The policy buyer can purchase either a policy that covers the structure alone or the contents in the structure. The insurance company will only compensate according to the type of policy bought. Under the property protection policy, the four parts have got specific components (Cummins, 1979). The dwelling section covers the building and all the built-in appliances and systems. The other structures section is basically for all detached structures. Detached structures comprise of things like fences, garages, storage shades and driveways. These components will not be compensated if they are normally used for business and are not included in the property policy bought (Cummins, 1979).
The other section under the property protection policy is the personal property section that covers all the personal contents of a home including all the items owned by all the people who reside in the house. This section has its limits and can not cover items like motor vehicles used outside the home. Other items that have limited coverage include business property, money and firearms (Gron, 1994). Endorsements can be added to the property protection policy by the insured if they wish to receive extra coverage for their property. The fourth and final section under the property protection policy is the loss of use category. This applies when the homeowner is denied entry to their houses because of a government order or repairs being made to the house.
Endorsements for additional coverage are only guaranteed if the insured pays an additional cost. Some of the additional coverage includes things like theft, removal of properly and any other damage to the building caused by a peril that is covered under the home insurance policy (Failey, 1979). The home owner insurance policy provides for replacement and rebuilding of the policy holders home provided all the requirements are met. In instances where replacement costs run over, an extended limit ranging between 20-25 % is normally added. For adequate replacement to be sustained; an inflation guard ensures that the home owner insurance cover is increased in line with the latest inflation rates (Failey, 1979).
The scheduled personal property section provides coverage for items like jewellery and electronics in the home. These items exceed the normal limits in the home insurance policy making it appear broad. Money and securities also call for additional coverage incase the limits are increased (Jaffee, 1997). The property protection policy provides coverage for a secondary residence under the additional coverage arrangement. The other categories under the additional coverage provision in the property protection policy include the theft coverage protection, depositors forgery coverage and the credit card forgery. Additional coverage also considers cases that can lack sufficient evidence or proof (Jaffee, 1997).
The home owners insurance policy also contains liability coverage apart from the property protection section. The liability coverage includes the Home Insurance Personal Liability and the Home insurance Medical payments. The personal liability policy covers for property related claims and lawsuits against the insurer. This insurance cover excludes motor-vehicles and accidents that are related to business. The positive thing with this section is that it includes ones family members as long as they live with the insured home (Gron, 1994). The medical expenses for those people injured on a persons property are normally compensated under the Medical Payments section. This section provides cover without considering the issue of fault. All the insurance policies have got exemptions and the homeowners insurance policy in no exemption. This policy does not cover damage due to natural calamities like floods and earthquakes. Injuries to animals and losses resulting from war also fall in the category of cases that are not normally compensated. Perils to be covered under the homeowners insurance policy vary and the policy holder should check and verify all the available perils for a personal policy (Cummins, 1979).
Liabilities and All- risks Cover
There is always a feeling of guilt and worry when an individual is responsible for damaging property that belongs to another person or having injured other people. Incase the person responsible has a homeowners policy; there is always no course for worry because all the damage and injury caused is compensated by the insurance company (Regan, 1999). Property damage and body injury claims have to be verified for legality before any compensation is given. The homeowner policy protects a person by paying all the damages caused by the insured and at the same time caters for the legal costs of he insured incase they are defending them against a claim. The liability insurance policy does not cater for family members injured on the property.
The all-risks cover protects all items that are valuable whether at home or away. The premiums for this type of cover are normally very expensive but it is justifiable if the items being covered are very valuable. In the all-risk cover, the items in question are listed and their value determined.There is a provision of overall valuing of items like electronic equipment and clothing but there is a maximum limit for this. The insurance company normally does an independent appraisal for those items that are above the required limit (Regan, 1999). The insured can not make a claim for all-risk cover from more than one insurance company. When one claims for compensation from more than one insurance company, there are certain consequences associated with that. One of those consequences is a possible increase in the amount of premium to be paid to the insurance company. The all-risk cover has some restriction regarding the context in which the insured items got lost (Failey, 1979).
Claims and Deductibles
A deductable is the amount of money paid out by a person before the insurance company provides any cover. Before the policy holder starts enjoying any benefits, they have to pay out the deductible first. High deductibles mean that the policy holder will pay lower premiums to the insurance company. A deductible is mostly applied when the property damaged or lost belongs to the policy owner. The value of the total loss is calculated and the insurance company only pays for the damage above the deductible value (Regan, 1999). Deductibles are proven to save policy holders a lot of money especially if the deductible is higher. The cost of having a homeowners insurance has been rising and many policy holders are opting for higher deductibles.
Customers who seek for small claims face the risk of being penalized by the insurance company. Deductibles are not constant and can differ according to different causes of a damage or loss. The amount is set depending on the type of peril ranging from theft, fire and natural perils. Deductibles can not be applied on third party liabilities because the third parties are responsible for recovering any losses on behalf of the policy holder. Travel and health policies also have deductibles which vary depending on whether it covers an individual or the entire family (Regan, 1999). For medical insurance policies, the deductible do not cover the normal visits to the hospital or health facility. Some insurance companies set the minimum and maximum amounts of deductibles an individual can pay in order to regulate the coverage system. The deductible reimbursement programs helps policy holders to pay their deductible incase of any claim.
Mortgage Protection Insurance
There is no doubt that the biggest debt in many families is the mortgage. Job security is not a guarantee nowadays and many families face the risk of losing their homes incase of a layoff or general loss of income. The mortgage insurance policy ensures that this does not happen and protects the home owner by the life add-on policy. The life add-on policy is the most cost effective method of getting a mortgage relief (Jaffee, 1997). The insurance company pays the mortgage on behalf of the policy holder after it has been completely certified that the policy holder is unable to continue paying for their mortgage. It is recommended for homeowners to seek to include a job-loss ruder in their policy which allows them to continue staying in their homes as they continue looking for another job. The lender requires a private mortgage in the event the down payment for the house is less than 20% of the total value of the house. This policy is needed until 80% of the total amount has been paid by the policy holder (Jaffee, 1997).
The cost of mortgage protection is normally governed by quite a number of factors. Policy holders with less secure jobs pay higher premiums compared to people with secure jobs. The level of job security is a very important factor when deciding the cost the customer should pay for their mortgage protection. The cost of mortgage protection also depends on the value of the home. Many insurance providers prefer less expensive mortgages to expensive ones. Mortgage protection costs are more affordable for owners with less expensive houses. Incase of a recession, the mortgage protection costs will automatically shoot up because of the possibility of many job losses and the imminent economic meltdown (Gron, 1994).
Home Shopping
The task of looking for a house is normally very tedious and difficult. This is caused by the many factors a good home has to meet. Buying a house is a big financial decision and care should be taken so the home buyer gets value for their money. The first consideration is to purchase a house that one can easily move out. This is a precautionary measure because some houses are difficult to resell after they have been bought. Changing life fortunes can make an individual want to sell their houses and if the house is not marketable, then there is a possibility of incurring a lot of losses by selling the house at a lower price (Regan, 1999). One should look for a marketable house so that it becomes easy for them to sell incase they decide to move out.
The other factor to consider when purchasing a house is size. Depending on the size of the family members, a home should be spacious enough to provide enough space for all the family members. A good house should have a minimum of three bedrooms and two bathrooms and some extra space incase expansion is needed. The structure of the house is very important when shopping for a house. A house with a lot of structural issues will cost the owner a lot of money in trying to fix those problems. A house with structural issues is dangerous to stay in because its chances of collapsing are always high. Large cracks and a caving in the wall is a proven recipe for disaster. It is advisable to avoid such houses for your safety and the safety of your finances Regan, 1999). The house should allow room for easy improvement of both internal and external aesthetics. Buying a house in urban areas is more advantageous because commuting becomes easy and cheaper.The other advantage is that houses in urban areas have good structures because their construction is normally under thorough scrutiny. The other benefit is that it is easy to sell a house in an urban centre because of the high demand.
The home should have a good curb appeal that reflects ones preferred lifestyle. Access to social amenities is a vital factor when shopping for a home. The home should have water, reliable electricity supply and should be near to the available means of transport. Good schools and health facilities in the neighborhood are very important when looking for a house (Failey, 1979). The security of the area should be confirmed because there is no need of buying a good house in an insecure area. Crime statistics can be obtained from the local police station to verify if the area is secure enough. A person shopping for a house should also consider the amount of property taxes. Some houses have high costs of property taxes and therefore individuals should consider buying homes with affordable taxes.
There are several amenities that a home buyer should pay attention to before purchasing a house. One should check the kitchen appliances, materials used for finishing, the ceiling, outdoor facilities and the major systems of the house. All these amenities should be assessed by the buyer for them to be in a better position to know what areas need improvement. The availability of playgrounds for children and outdoor facilities are also very appealing factors. The neighborhood should be well laid out with stores and shopping centers near to the home (Regan, 1999). A good home should also have spacious driveways and parking. All these factors should be considered when shopping for a quality home.
Home Insurance Cover
The homeowners insurance has got a lot of components that ensure all the items in a home are effectively covered. After buying that dream house, it is very necessary for the homeowner to give their valuable property some much needed protection because the world is very uncertain and anything can happen anytime. The home insurance is a perfect solution for this. The homeowners insurance covers a variety of items from the structure, the systems, items in the house and other detachable attachments to the house (Gron, 1994). The policy holder decides what they want covered depending on the cost of premium they are willing to pay for. A person can decide to buy a policy covering the building alone or together with all the contents in the buildings. The items for all the family members residing in the house are normally covered by this property policy. The insured pays an extra cost for both the building and contents.
There is also the liability policy that compensates the victims injured on the policy holders property. The liability premium ensures that the all the damage or injury caused by a fault on the side of the policy holder are adequately compensated. The insurance company only compensates victims after certifying that the policy holder was completely at fault. Incase, the policy holder refuses to accept the responsibility of having caused the damage or injury, the insurance company covers for the legal fees in their legal defense. The liability section covers compensation for those victims who are not members of the family (Cummins, 1979).
The homeowners insurance policy also provides a special item for special coverage. The policy holder can enjoy extra coverage under the endorsement section. Under the endorsement section, the policy holders items that are in other premises outside the home are compensated incase of damage or loss. The endorsement section applies to those policy holders who pay extra costs for their premiums (Regan, 1999). The homeowners insurance policy also provides mortgage protection incase the policy holder lose their source of income and are unable to continue paying for their mortgage.
In conclusion, the homeowners insurance policy is necessary for all those people who own homes. The property protection and liability sections ensure that the policy holder is adequately compensated incase of damage or a loss occurs. Deductibles ensure that the policy holder pays less insurance costs by helping them to save a lot of money. The unpredictable nature of job security has led to introduction of the mortgage protection policy that continues to pay the mortgage on behalf of the insured incase they lose their sources of income. It is very important for those shopping for homes to consider all the fundamental factors before purchasing a home.
References
Cummins, J.D. (1979). A note on the relative efficiency of property liability insurance distribution systems. The Bell Journal of Economics, 10, (2), 709-19.
Failey, W.B. (1979). Investment income and profit margins in property liability insurance: Theory and empirical results. The Bell Journal of Economics, 10, (1), 192-210.
Gron, A. (1994). Capacity constrains and cycles in property-causality insurance markets. The RAND Journal of Economics, 25, (1), 110-27.
Jaffee, D.M. (1997). Catastrophe insurance, capital markets and uninsurable risks. The Journal of Risk and Insurance, 64, (2), 205-30.
Regan, L. (1999). Organizational form in the property-liability insurance industry. The Journal of Risk and Insurance, 66, (2), 253-73.
Insurance has a long history, which stretches back to the 3rd millennium BC. In its early history, insurance was nothing other than rudimentary risk spreading mechanisms employed by Chinese traders. They distributed their wares into many vessels so that if one or a few vessels capsized, the loss was evenly distributed among several traders. Over the years, insurance has evolved to become the well organized industry that exists today.
However, contrary to the notion that such a refinement would eliminate malpractices from this industry, the case has been different. Insurance malpractices are estimated to cost over $40 billion globally ( Insurers Say Fraud on the Rise par. 10). To make matters worse, despite there being regulations to control the industry, there are no signs of a reduction in the prevalence of this behavior.
The U.S. is one of the countries in which the prevalence of this problem is at its highest level (Goel 241). Consequently, this report examines the disciplinary measures that have been employed by the insurance regulator in the State of New York in a bid to determine what constitutes a good insurance company.
The New York State Department of Financial Services deals with a myriad of malpractice cases in the insurance industry. The cases involve insurance companies, insurance agents and agencies as well as insurance brokers. The severity of a disciplinary action taken by this government agency against any player in the industry is dependent on the nature of the malpractice committed. Some cases can be fined up to millions of dollars while others only cost the culprits a few thousand dollars.
In the recent past, the most serious case handled by the New York State Department of Financial Services involved Aetna Life Insurance Company (New York State Department of Financial Services (a) par. 1). It had used noncompliant policy forms to issue life insurance for six different groups. The certificates issued thereof omitted some critical information on the statutory provisions that the insured people had a right to know.
In essence, the insurance company withheld information about rights and benefits, which the insured individuals were entitled to. The Department of Financial Services requested Aetna Life Insurance Company on several occasions to change the faulty forms and use the right ones, but the company refused to comply.
In the end, the company was charged for this malpractice and fined $500,000. This case is among the most serious cases handled by the Department in the recent past. In all the cases that were handled by the Department in 2014 and those that were handled in 2013, this case attracted the second highest fine. However, it is not isolated because there were numerous other cases that the Department dealt with in the same period.
The other cases handled by the Department of Financial Services include the Permanent General Assurance Corporation case in which the insurance company had to part with a fine of $75,000 after it was found culpable for reporting incorrect cancellation dates for numerous automobile insurance policies to the New York State Department of Motor Vehicles. The company also issued numerous cancellation notices for automobile insurance policies in violation of Section 313 of the New York Vehicle and Traffic Law.
A point worth noting in this case is that the incorrect cancellation dates were reported via electronic transmission. This point is important because a careful look at the cases that the Department of Financial Services dealt with in 2014 and 2013 shows that other insurance companies also reported false cancellation dates and interestingly, they also did so via electronic transmission. A good example involves Encompass Indemnity Company and its affiliates, which were fined $40,100 for reporting incorrect cancellation dates via the electronic platform.
In a case that sounds bizarre, the Department fined Liberty Mutual Fire Insurance Company $46,800 due to its failure to inform a large number of its clients about the cancellation of their personal policies. The law requires insurance companies to notify a client whenever a policy is cancelled, but this company consciously failed to do so.
The implication of this behavior is that if any of the insured individuals had encountered a problem that required this company to come to their aid, they would have been shocked because according to the company, they were no longer in the list of clients. In other words, there would be no compensation for them. This case demonstrates how reckless and unethical insurance companies and their agents can become in their quest to rake in profits.
They constantly violate established laws and regulations and hope to get away with their crimes. However, they tend to be careful enough not to violate laws that can lead to the revocation of their licenses. The highest fine charged by the Department in 2014 was $525,000 (New York State Department of Financial Services (b) par. 13). It is a hefty fine, but it is far much less severe in comparison to license revocation. Insurance agents and brokers were, however, not as lucky.
In most of the cases that involved insurance agents and brokers, the penalty involved license revocation. It is not clear whether they were more reckless than the companies they worked with, but a good number of them were barred from operating. It is thus plausible to deduce that it is easier to deal with agents and brokers more strictly because the collateral damage the results from the revocation of their licenses is easily manageable.
On the other hand, the most prevalent malpractice among insurance companies involved the violation of assorted sections of insurance law and the Department of Financial Services regulations and the use of noncompliant forms in issuing insurance policies. Specifically, the violation of subdivisions of Department Regulations 64 & 68 (11 NYCRR 65 & 216), Regulation 95 (11 NYCRR 86) and Section 3425 of the Insurance Law were the most common malpractices.
The violations attracted varying amounts of fines for different companies, but it is almost certain that the companies that were involved will still violate either the same regulations or others since trends indicate that insurance malpractices are far from showing any signs of abatement ( Insurers Say Fraud on the Rise par. 10).
This state of affairs leads to an important conclusion. The reputation of an insurance company or agent is critical when seeking an insurance policy. The leading insurance companies did not feature on the Department of Financial Services list of victims except the Hartford Group of Companies whose several affiliates were culpable for several assorted violations.
Since this is an isolated case, it is safe to argue that the company only featured in the list due to lack of diligence among its individual employees. Therefore, the reputation of an insurance company or an agent can serve as the ultimate yardstick for determining the best company to deal with. Established insurance companies and agents strive to maintain a good reputation because their ability to attract new clients is pegged on their reputation. As such, they are unlikely to consciously engage in insurance malpractices, making them the best.
Works Cited
Goel, Rajeev K. Insurance fraud and corruption in the United States. Applied Financial Economics 24.4 (2014): 241-246. Insurers Say Fraud on the Rise. American Agent & Broker 1. Insurance Journal.
New York State Department of Financial Services (a). New York State Department of Financial Services takes disciplinary actions against companies, agents, brokers & adjusters. NYSDFS, New York, 2014.
New York State Department of Financial Services (b). New York State Department of Financial Services takes disciplinary actions against companies, agents, brokers & adjusters. NYSDFS, New York, 2014.
