IMPROVING ALLOCATION AND RELEASE OF MEDICAL BENEFITS

T0 THE CLIENTS/EMPLOYEES OF MKAVI, LANTAPAN, BUKIDNON

A CASE STUDY

Presented to the Faculty of the

Expanded Tertiary Education Equivalency and Accreditation Program
Capitol University
Cagayan de Oro City

In Partial Fulfillment of the Requirements for the degree

Bachelor of Science in Business Administration major in
Human Resource Management

ANNA LYNN A. ALBERTO

January 2024

APPROVAL SHEET
This paper entitled “IMPROVING ALLOCATION AND RELEASE OF
MEDICAL BENEFITS T0 THE CLIENTS/EMPLOYEES OF MKAVI,
LANTAPAN, BUKIDNON”, prepared and submitted by Anna Lynn A.
Alberto, in partial fulfillment of the requirements for the degree
BACHELOR OF SCIENCE IN BUSINESS ADMINISTRATION major in
Human Resource Management has been examined and is
recommended for oral examination/defense.
LILIA P. DURALIZA DM
Adviser
_____________________________________________________________________
___
PANEL OF EXAMINERS
Approved by the Panel of Examiners in partial fulfillment of the
requirements for the degree BACHELOR OF SCIENCE IN BUSINESS
ADMINISTRATION major in Human Resource Management with a
grade of ______________.

ALDRICH S. PALARCA, DM, FRIEdr

Chairman

LILIA P. DURALIZA, DM GIOVANNE N. OCLARIT

Member Member
_____________________________________________________________________
__
Accepted and approved in partial fulfillment of the requirements for
the course BACHELOR OF SCIENCE IN BUSINESS
ADMINISTRATION major in Human Resource Management.

ALDRICH S. PALARCA, DM, FRIEdr

Director, ETEEAP

Ii
 ACKNOWLEDGMENT

This paper was made possible with the guidance and support of people who

helped in its accomplishment.

Capitol University through the office of the Expanded Tertiary Education

Equivalency and Accreditation Program (ETEEAP) for his acceptance in the

university.

Special thanks to the Mt. Kitanglad Agri-Ventures, Inc. for supporting &

encouraging her to pursue her desire to earn a baccalaureate degree in

business.

Sincerest gratitude is also given to her adviser, Dra. Lilia P. Duraliza, for her

guidance, meticulous scrutiny, scholarly advice & suggestions, and patience

in working with her on this paper.

To the Panel of Examiners headed by Dr. Aldrich S. Palarca, Giovanne

Oclarit, for their valuable comments and suggestions which led to the

enhancement of this manuscript.

Deep sense of gratitude to her family especially her husband, for his

constant encouragement and support for the realization of this paper.

Lastly, to our Almighty God, for providing the author with the wisdom,

knowledge and the resources needed to come up with this paper.

God bless all of you.

iii
 TABLE OF CONTENTS

TITLE PAGE i

APPROVAL SHEET ii

ACKNOWLEDGMENT iii

TABLE OF CONTENTS v

I. Introduction 1

II. Rationale of the Study 3

III. Company Background 4

IV. The Case Presentation and Analysis 5

 The Situation 5

 Statement of the Problem 7

 Objectives 7

 Areas of Consideration 8

 Alternative Courses of Action 9

 Recommendations 12

V. Bibliography 14

VI. Appendices 15

VIII. Curriculum Vitae 35

iv
IMPROVING ALLOCATION AND RELEASE OF MEDICAL BENEFITS T0
THE CLIENTS OF MKAVI, LANTAPAN, BUKIDNON

Introduction

The allocation and release of employee medical benefits is an important

aspect of an organization's overall employee benefits package. It involves

the process of providing healthcare coverage and related benefits to

employees, ensuring their well-being, and addressing their medical

needs.

1. Designing the Benefits Package: The first step in allocating and

releasing employee medical benefits is designing a comprehensive

benefits package. This involves considering factors such as the

organization's budget, legal requirements, employee demographics, and

industry standards. The benefits package may include health insurance,

dental and vision coverage, prescription drug plans, mental health

services, and other medical benefits.

2. Enrollment and Eligibility: Once the benefits package is designed,

employees need to be informed about the available medical benefits and

the enrollment process. Clear communication is essential to ensure that

employees understand the eligibility criteria, enrollment deadlines, and

any required documentation. HR departments often play a crucial role in

facilitating the enrollment process and addressing employee queries.

3. Provider Selection: Organizations need to select healthcare providers or

insurance companies to administer the medical benefits. This involves

evaluating different providers based on factors such as network coverage,

cost-effectiveness, quality of services, and customer satisfaction.

Negotiating contracts and establishing partnerships with providers is

necessary to ensure seamless access to medical services for employees.

4. Claims Processing: Once employees start utilizing their medical

benefits, the organization needs to have an efficient claims processing

system in place. This involves verifying the eligibility of the employee,

reviewing the medical services provided, and reimbursing the employee or

paying the healthcare provider directly. Timely and accurate claims

processing is crucial to maintain employee satisfaction and ensure

smooth operations.

5. Compliance and Legal Considerations: Organizations must comply

with relevant laws and regulations governing employee medical benefits,

such as the Affordable Care Act (ACA) in the United States. Compliance

includes providing required documentation, adhering to privacy and

confidentiality regulations (e.g., HIPAA), and reporting necessary

information to government agencies. Regular audits and reviews are

essential to ensure compliance and avoid legal issues.

6. Employee Assistance Programs: In addition to medical insurance,

organizations may offer employee assistance programs (EAPs) to support

employees' mental and emotional well-being. EAPs can provide

counseling services, resources for managing stress, and referrals to

specialized professionals. Allocating resources to EAPs can contribute to

a holistic approach to employee healthcare.

 2

7. Ongoing Communication and Education: To maximize the value of

medical benefits, organizations should continuously communicate with

employees about available services, changes in coverage, and wellness

initiatives. Regular educational programs, newsletters, and online

resources can help employees make informed decisions about their

healthcare and take advantage of available benefits.

In summary, the allocation and release of employee medical benefits

involve designing a comprehensive benefits package, facilitating

enrollment, selecting healthcare providers, processing claims, ensuring

compliance, offering employee assistance programs, and maintaining

ongoing communication and education. By prioritizing employee well-

being and providing adequate medical benefits, organizations can

enhance employee satisfaction, productivity, and overall organizational

success.

At MKAVI, Lantapan Bukidnon, allocation and release of employees’

medical benefits became an issue, and it has an impact on the

productivity of employees’ morale and productivity in general.

Rationale
This study aims to identify the recent concern regarding MKAVI

employee’s medical benefits, and how the delay of these medical benefits

affects the

employee’s well-being and productivity as well, thereby finding the

interventions to address this concern.

Company Background

Highland Agri- Ventures is a producer and exporter of the world market-

preferred quality highland sweet bananas at an elevation of 700 meters

above sea level in Patag, Alanib, Lantapan Bukidnon. It came into

existence in the year 1998 by a group of entrepreneurs who dreamed of

developing the fertile lands of Bukidnon into an agi-venture of export-

quality highland bananas. From then on, the company moved forward.

Two test plots were planned in September 1999 and continued a

staggered basis completing the first 250 hectares planted area with three

hundred employees. The company has utilized novel production

technologies and practices that enable its Precious bananas consistently

maintain the highest quality rating in the Japanese market. Moreover, it

has immensely contributed to the economic growth and stability of the

municipality of Lantapan by providing substantial employment to its

populace Today, a total of 1,677 employees run the whole organization

from Executives down to. Rank and file and banana farms.
 4

Case Presentation and Analysis

The Situation

At MKAVI, everyone is taken cared for. One benefit that the employees

enjoy is the medical benefit, which is very helpful when the employee got

sick, he /she will be admitted to the accredited hospital listed by MKAVI.

The funds are taken from the organization itself. It has specifically

allotted or budgeted funds for medical expenses and this is called HMO

or Health Maintenance Organization otherwise named Guaranteed Letter

to MKAVI employees. These medical benefits were intended for MKAVI

employees’ medical expenses during emergency times or when they got

hospitalized. There are affiliated hospitals who would accept MKAVI

employees such as the following:

1.Maria Reyna Hospital

2. Madonna Hospital

3. Capitol University Medical Center

4. CDO Polymedic Medical Plaza

5. Polymedic Velez

6. Malaybalay Polymedic Hospital

 5

7. Valencia Polymedic Adventist Hospital

8. Blanco Dental Clinic

9. St Jude Hospital

10. Malaybalay Medical Hospital

11., Provincial Hospital

12. Nalzaro Dental Clinic

13. Carpio Dental Clinic

14. Gonato Dental Clinic

15. Eyes and Shades Hospital

16. CDO Medical Center

At times when the funds got drained especially when many got

hospitalized at the same time, the hospitals where the patients got

admitted will stop treating the patients and attending doctors seldom

make the rounds anymore. And this gives a problematic concern for the

family. So what they did is apply for a cash advance from their salary,

but doing it will take time because there are still processes to undergo for
the application and the Cash advance won’t be released at once. At this

point, employees’ moral got low when their health issues are at stake.

This is the concern that challenge MKAVI employees, because once they

were admitted at the hospital for long, they also missed work for long.

With this the efficiency and productivity of the employees are affected at

the same time the overall efficiency and productivity of the entire

organization as well.

It is in this light that this case study is being conceived to find some

interventions to address this concern.

Statement of the Problem

This study answers the following questions.

1.What is the most pressing concern faced by MKAVI’s employees?

2. How does this concern affect the employee’s well-being and his

productivity?

3.What possible interventions can be proposed to address this concern?

Objectives

This study aims to identify the recent concern regarding MKAVI

employee’s medical benefits, and how the delay of these medical benefits
affects the employee’s well-being and productivity as well, thereby finding

the interventions to address this concern.

Areas of Consideration

Manpower

The number of workers at MKAVI is sufficient to perform their respective

tasks and responsibilities. They are experienced in their work and did

their best to be efficient and productive. There is no need to add more

manpower.

Salary

In terms of salary, it is attractive, competitive, and compensating to every

employee. They were also provided with benefits and insurances. One of

the benefits provided is the medical benefits. When an employee got sick

he will be admitted to the accredited hospitals. But at times when many

got sick, the medical benefit would not suffice for all.

Mansion

The workplace is comfortable for the workers to perform their job. It is

well ventilated and lighted. Everyone feels the comfort while working and

the place is conducive to fresh air as well.

Management

Management is very supportive to all the employees of MKAVI. It makes

sure everyone has been provided with what is due to them. It makes sure

they

are happy and contented in their workplace. Relationship between the

management and the employees is harmonious and there is that sense of

belongingness for everyone.

Alternative Courses of Action

The following alternative courses of action are considered as helpful

interventions to address the issue on allocation and release of employee’s

medical benefits at MKAVI.

1.The management shall inform the employees of the certain budget limit

for their medical benefits.

Pros

Informing the employees that the allocated certain budget for each, shall

prepare them to save for emergency purposes. Knowing that getting

admitted to hospital is very expensive, so they would save in advance for

emergency purposes.

Cons

The issue is when they have extra amount for savings, since we know

that almost all is very expensive nowadays.

2. MKAVI shall increase the budget for employees’ medical benefits if it

can afford

Pros

If the company is capable, increasing the budget for medical benefits for

each employee would be of great help.

Cons

Increase in the allocation of employees’ medical benefits needs additional

budget for the company.

3. MKAVI shall have a contingency fund for emergency cases to cover up

the consumed allocation of employees’ medical benefits

Pros

The company shall have a contingency fund for emergency cases which

can be borrowed now when the medical benefit allocation for each

employee is not enough for the hospitalization expenses.

Cons
It is additional budget for the company. Contingency fund is an

additional expense, and it might not have been prepared for the year’s

budget.

4. In cases of emergency, strict protocol on application for Cash advance

shall be waived now by MKAVI.

10

Pros

Application for cash advance has to follow protocol and procedures.

And it takes time to process it. In cases of emergency when the

employee has consumed the medical benefit and apply for cash

advance, the process can be waived now and let the concern comply

the documentation later.

Cons

The concern is if the process is to be strictly implemented and the in

charge would not consider waiving the process.

5. MKAVI shall provide each employee another health insurance on

top of the MKAVI medical benefits allocation

Pros
Providing the employee with another health insurance on top of

MKAVI medical benefit allocation would be of great help to the

employee in cases of emergency.

Cons

It would be another salary deduction of the employees’ pay and the

tendency is they will be having a very small take home pay during

paydays.

11

Recommendation

After careful analysis and consideration, the proponent recommends

all of the above alternative courses of action as interventions to

address the issue on the allocation and release of MKAVI’s medical

benefits. First, MKAVI shall inform the employees of the certain

budget limit for their medical benefits. informing the employees, the

allocated certain budget for each, shall prepare them to save for

emergency purposes. Knowing that getting admitted to hospital is very

expensive, so they would save in advance for emergency purposes.

Second, MKAVI shall increase the budget for employees’ medical

benefits if it can afford. If the company is capable, increasing the

budget for medical benefits for each employee would be of great help.

Third, MKAVI shall have a contingency fund for emergency cases to

cover up the consumed allocation of employees’ medical benefits. The

company shall have a contingency fund for emergency cases which

can be borrowed now when the medical benefit allocation for each

employee is not enough for the hospitalization expenses. Fourth, in

cases of emergency, strict protocol on application for Cash advance

shall be waived now.

Application for cash advance must follow protocol and procedures.

And it takes time to process it. In cases of emergency when the

employee has consumed the medical benefit and apply for cash

advance, the process.

12

can be waived now and let the concern comply the documentation

later. And lastly, provide each employee another health insurance on

top of the MKAVI medical benefits allocation. Providing the employee

another health insurance on top of MKAVI medical benefit allocation

would be of great help to the employee in cases of emergency.

 13

Bibliography

https://www.google.com/aclk?

sa=l&ai=DChcSEwjyje_UsIaDAxUOXA8CHRBwD1oYABAAGgJ0Yg&ase

=2&gclid=Cj0KCQiA4NWrBhD-

ARIsAFCKwWtSIb0QMMmY4LexH2BRHQJQKJ1gb_2voQGcpVVjB_Tgc

2UMQex7kXsaAuiNEALw_wcB&sig=AOD64_26OmsVkDg5W_RGsbpi5

b-le9K-

qQ&q&nis=4&adurl&ved=2ahUKEwi_purUsIaDAxWphq8BHdphC_QQ

0Qx6BAgLEAE

https://www.pacificprime.com/blog/employee-medical-insurance-

why.html

https://www.upwork.com/resources/employee-health-benefits
14
Appendices

15
16
17
18
19
20
22
23
24
25
26
27
28
29
30
31
32
33
34
 Curriculum Vitae

ANNA LYNN A.
ALBERTO

+639178752142
cookie.alberto@unifrutti.com.ph

P4 Alanib 8722, Lantapan, Bukidnon

PERSONAL INFORMATION
Name: Anna Lynn A. Alberto
Date of Birth: September 26, 1974
Age: 49 y.o
Marital Status: Married
PROFESSIONAL SUMMARY
I am a regular employee of Mt. Kitanglad Agri-Ventures Inc. for 23 years. Graduate of 2-
year course currently aiming for bachelor’s degree in administration Major in Human
Resources Development Management. I would like to pursue my studies with specific
field with great enthusiasm to improve my skills and knowledge in working with HR
Professionals and in handling different people with different personalities. Moreover, I
want to be more competitively equipped for an aimed promotion in our company.

ACADEMIC BACKGROUND

TERTIARY:
ETEEAP - Bachelor of Science in Business Administration- Major in Human Resources
Development Management
Capitol University Cagayan de Oro City 2023-2024

Midwifery
Cagayan Capitol University Cagayan de Oro
1993-1996

SECONDARY:
Sugbongcogon National High School
Sugbongcogon, Misamis Oriental
1989-1993
PRIMARY:
Lila Central Elementary School Lila, Bohol
1981-1989

TRAININGS AND SEMINAR

 Retro Philippines ZST Choreography & Master

Class RG Retro Philippines
October 14, 2023

 Assess-and-Address Training
Mt. Kitanglad Agri-Ventures, Inc.
September 16, 2023

 Grievance Mechanism Policy & Procedure

Training Mt. Kitanglad Agri-Ventures, Inc.
September 7, 2023

 Assess-and-Address Policy and Procedure Training

Mt. Kitanglad Agri-Ventures, Inc.
September 5, 2023

 Proper Waste Management Training

Mt. Kitanglad Agri-Ventures, Inc.
August 7, 2023

 Grievance Mechanism Training

Mt. Kitanglad Agri-Ventures, Inc.
August 7, 2023

 Fire and Earthquake Drill

Department of Interior and Local Government and Bureau of Fire Protection
August 29, 2023

 Miss Little Barangay 4

Barangay 4, Malaybalay City
August 20, 2023

 Mandatory Eight (8)-hour Safety and Health (MESH) Seminar for Workers
Unifrutti Tropical Philippines, Inc.
 July 11, 2023

 Food Safety Training

Mt. Kitanglad Agri-Ventures, Inc
March 20, 2023

 8 Hours Mandatory Training

Mt. Kitanglad Agri-Ventures, Inc
March 7, 2023

 5 S’s Training
Mt. Kitanglad Agri-Ventures, Inc
March 14, 2023

 Incident Accident Training

Mt. Kitanglad Agri-Ventures, Inc.
February 24, 2023

 Blue Card Training

Mt. Kitanglad Agri-Ventures, Inc.
February 10, 2023

 Retro Philippines ZST Choreography & Master Class

RG Retro Philippines
January 8, 2023

 Philippine HR Summit
Mt. Kitanglad Agri-Ventures, Inc. November 3-4, 2022n

 Gender Equality Training

Unifrutti Tropical Philippines, Inc. and Mt. Kitanglad Agri-Ventures, Inc.-1
October 22, 2022

 Gender Equality Training

Unifrutti Tropical Philippines, Inc. and Mt. Kitanglad Agri-Ventures, Inc.-1
October 22, 2022

 Relationship-based Customer Service Training

Mt. Kitanglad Agri-Ventures, Inc
September 14-15, 2022
 Training of Trainers
Unifrutti Tropical Philippines, Inc. and Mt. Kitanglad Agri-Ventures, Inc.-1
August 24, 2022

 17th National Occupational Safety and Health Congress

Department of Labor and Employment and Occupational Safety and Health Center
September 28-30, 2021
 Pag-Ibig Fund, Fund Coordinator’s Year End Assembly
Pag-ibig Fund (Home Development Mutual Fund)
December 9, 2019

 Training of Trainers 2018

Unifrutti Tropical Philippines, Inc.
July 24-26, 2018

 Enhancing Emotional Intelligence for a Better Working Relationship &

Improved Productivity
People Management association of the Philippines (PMAP) Bukidnon
Chapter
April 26, 2018

 Documents & Records Management Training 2017

Unifrutti Tropical Philippines, Inc.
November 8-9, 2017

 19th Philippine-Mindanao PMAP Summit

People Management association of the Philippines (PMAP) Bukidnon Chapter
July 27-28, 2023

 General Assembly cum Learning Session on Department Order No. 174 series
of 2017 otherwise known as “Rules Implementing Articles 106 to 109 of the
Labor Code, As Amended, Sharing of LMC Best Practices: Productivity and
Innovation; and OWWA Programs and Services

 Department of Labor Conciliation Mediation Board and Labor Management

Cooperation Practitioners-Northern Mindanao
May 17, 2017
 General Environment, Health & Safety Awareness
Unifrutti Tropical Philippine, Inc.
February 16, 2017

 Government Mandatories Orientation (SSS/ HDMF/ PhilHealth)

Mt. Kitanglad Agri-Ventures, Inc.
November 9, 2016

 Major Updates on DOLE Issuances and Labor Code Symposium

People Management Association of the Philippines
July 16, 2016

 17th PMAP Mindanao Summit

People Management Association of the Philippines Davao Chapter
August 13-14, 2015

 Basic and Practical Management Skills Seminar

Mt. Kitanglad Agri-Ventures, Inc.
June 11, 2015

 Government Mandatories Orientation (SSS/ HDMF/ PhilHealth)

Mt. Kitanglad Agri-Ventures, Inc.
April 2, 2014
WORK REFERENCES

ALEXANDER F. SOLANO
Vice President Chief Human Resource Officer
+639178758450

ROQUE S. DUMAQUE
Human Resource Manager
+639178798024

GARY L. VILLA
Unifrutti Tropical Philippines Inc.
+63178798038