Running head: M4A1: Cafeteria Plan Benefit Package 1

M4A1: Cafeteria Plan Benefit Package

name

Excelsior College

Author Note

This paper was prepared for NUR418 Human Resource Management in Healthcare

Organizations, taught by Professor Lisa Giarda

 M4A1: CAFETERIA PLAN BENEFIT PACKAGE 2

Based on our assignment, I have created a fictional healthcare organization and

highlighted some of their benefits offered to their employees.

Healthcare Done Right is a practice focused on the taking care of athletics. We focus on
rehabilitation, allopathic, osteopathic, surgical and non-surgical interventions to make you
healthy and active. Our physicians are board-certified and catering to athletes at any age. Our
practice consists of thirty-five physicians and fifty-support staff dedicated to providing superior
outcomes. We are located in Disco, Tennessee.

At Healthcare Done Right, we believe our greatest assets are our employees. We offer a
competitive benefit package with an array of options to meet your needs and contribute to your
well-being. We promote a health environment and want to empower you to take control of your
healthcare needs.

Below is a list of Healthcare Done Right benefits available during our 2018 Open Enrollment
period:
 Medical Insurance  HSA Employer Contributions
 Vision  Dental
 Long – Term Disability (STD)  Critical Illness Insurance
 Dependent Care Flexible Spending  Short-Term Disability (LTD)
Account (FSA)
 Flextime Scheduling

How and when do you enroll?

Open enrollment is held May 16-August 16, 2018. We are pleased to offer you access to a
Benefit Coordinator, who will walk you through our current plans and assist you with selecting
the right benefits for you and your family.

MEDICAL PLANS
Group Medical Benefits Premium Choice Traditional
In-network benefits
Deductible (Single/Family) $1,500/$3,000 $1,500/$3,000
Medical Out-of-Pocket Max $3,000/$6,000 $3,000/$6,000
Coinsurance 80%/20% 90%/10%
Primary Doctor Office Visit Deductible + 20% $25 copay
Specialist Doctor Office Visit Deductible + 20% $60 copay
Out-of-Network Benefits
Deductible (Single/Family) $4,000/$7,000 $4,000/$7,000
Coinsurance 60%/40% 60%/40%
Out-of-Pocket
Emergency Services Deductible & Coinsurance Deductible & Coinsurance
M4A1: CAFETERIA PLAN BENEFIT PACKAGE 3

RATE FOR MEDICAL PLANS

Bi-Weekly Deductions Premium Choice Traditional
Contributions paid by employee
Employee $60.00 $150.00
Employee and 1 child $110.00 $250.00
Employee and spouse $200.00 $370.00
Family $240.00 $550.00

SHORT TERM DISABILITY (STD)

We are pleased to announce this benefit will be paid by the company and offered to employees at
no cost. Employees working at least (30) hours a week are eligible to receive this benefit.

PAID TIME OFF (PTO)

Healthcare Done Right believes our staff members are the key to our success. A work life
balance is essential to creating a great patient experience, maintaining health employees and
providing a positive work environment. To support this viewpoint, Healthcare Done Right has
incorporated vacation, personal and sick leave into one program, We have increased the number
of hours provided to all eligible full-time employees and provide two (2) Floating Holidays each
year.

401(K) RETIREMENT PLAN

Planning for the future is important to us and we want to ensure our employees are able to enjoy
their retirement. You are eligible to participate in the Healthcare Done Right 401(K) Plan which
includes an automatic contribution, if you are at least age eighteen (18) years of age and have
completed sixty (60) days of service with the company. We are proud to offer this benefit to our
employees.

HEALTH SAVINGS ACCOUNT (HSA)

An HSA is a tax deferred bank account which allows you to pay for healthcare related expenses
on a tax free basis. The HSA account must be used with the Premium choice plan. The funds in
an HSA are 100% vested to the account holder, and can rollover from year to year.

If you enroll in the Premium choice plan and elect to open an HSA account (or have an existing
HSA account), Healthcare Done Right will deposit $1000 into your account to get you started!!!

DEPENDENT CARE FLEXIBLE SPENDING ACCOUNT

A dependent care account is way to save money on care for your dependents. Allowing you to
lower the amount of money you are taxed and putting more money back in your pocket. The
funds can only be used for qualified dependent care expenses.

Eligible Dependents
M4A1: CAFETERIA PLAN BENEFIT PACKAGE 4

Children under age 23 who are claimed as a dependent for tax purposes
A Disabled spouse or disabled dependent of any age

FLEXIBLE TIME SCHEDULING- TELECOMMUNTING

Healthcare Done Rights offers its employee flexible time scheduling which includes the ability to
work remotely, when possible. We want our employees to work-life balance and we are aware
that some of our employees are the caregivers to family members. Please see your supervisor to
obtain additional details on this program.

DENTAL PLAN
Group Medical Benefits Premium Choice Traditional
Maximum per person yearly $1,500 $2,000
In-network benefits
Cleanings, Exams, X-Rays 100% 100%
Basic Services - Fillings, Extractions, 90% 100%
Anesthesia, Repairs
Major Services - Gold & Porcelain Fillings, 60% 60%
Crowns, Bridgework, Dentures
Orthodontia Lifetime Max (Child less than 19) Not covered 50% with a cap of
$1,000
Endodontic (Root Canal) Basic Basic
Oral Surgery Basic Major

VISION PLAN
Plan Benefits In-network Out-of- network
Frequency Once per calendar Once per calendar
year year
Eye exams Copay of $55.00 Copay of $200.00
Single $55.00 copay Plan pays up to $49
after $25 Copay
Bifocal $55.00 copay Plan pays up to $63
after $25 Copay
Trifocal $55.00 copay Plan pays up to $75
after $25 Copay
Frames $55.00 copay Plan pays up to $95
after $25 Copay
Contacts $55.00 copay Plan pays up to $100
after $25 Copay

Barringer & Milkovich (2008) reviewed organizations with flexible benefits which

included “pre-tax salary reductions to pay for benefits” and plans with various options (p.1).
M4A1: CAFETERIA PLAN BENEFIT PACKAGE 5

These innovations provided by human resources allow companies to be competitive and obtain

the best talent available. Flexible benefit plans have three preferred benefits that employees

prefer “health insurance, a pension plan, and paid vacation” (Fallon & McConnell, 2014, p.149).

Telecommuting increases productivity and employee morale (Rocco, 2014, p.3). However,

organizations are finding reasons to avoid allowing its employees the ability to have flexible

hours and/or telecommute. As the American population ages, more working adults will become

the primary caregiver of aging parents. They will require the flexibility to support their loved

ones and employers should work to accommodate employees such as billing clerks,

administrative support and other roles where their presence is not required.
M4A1: CAFETERIA PLAN BENEFIT PACKAGE 6

References

Fallon, L. F., & McConnell, C. R. (2014). Human resource management in health care:

Principles and practice. Sudbury, MA: Jones and Bartlett Publishers.

Barringer, M. W., & Milkovich, G. T. (1998). A theoretical exploration of the adoption and

design of flexible benefit plans: a case of human resource innovation. Academy Of

Management Review, 23(2), 305-324. doi:10.5465/AMR.1998.533228

Rocco, D. A. (2014). Telecommuting as a reasonable accommodation: a remote possibility?.

Employee Relations Law Journal, 40(3), 48-52.