Health And Dental Insurance Case Study

Option 1 savings from reduction of benefits
Elimination of 1 paid holiday: 8x105=840
Elimination of 10 minute break: 3410/60=56.8356.83-10=46.8346.833x50(less 10 minute break from 60)=$2341.67
Elimination of 2 sick days: 105x8=840 total cost saved: $3265.70 16904-3265.7=$13638.30
OPTION 2 Savings from reduction of benefits
Probationary period for health and dental insurance:
Health Insurance: $4000x5%=2004000-200=3800 Dental: $350x10=35350-35=315
Unemployment Compensation: $434x 8%=$34.72$434-$34.72=$399.28
Worker's compensation: 546x3%=13.02$546-13.02=4532.98
Short term and long term benefits: 83+57=$140 140x1%=$1.4
Eliminate 2 paid holiday= 9/945=$105105x7=$735
Elimination of tuition reimbursement: $71.00 total cost saved: $985416904-9854=7050 …show more content…
Children often get sick and parents have to use a personal or paid sick day to stay home with their sick child or dependant. Option 1, has a co-pay for a pension plan, where option 2 does not mention the pension plan. Dental insurance, health insurance premiums, and life insurance premiums are the same in option 1 as they are in option 2. However, there is a difference in price for short-term and long-term disability insurance in option 1 and 2. Option 1 offers Short-term and long-term disability insurance for $7.50 per month and option 2 offers short-term and long-term disability insurance for $5.00 per month. Option 1 would cost the company $13,638.70 versus the $16904.00 that the company is already …show more content…
The employees will lose one paid holiday, two sick paid days, and a ten minute break. Those things are quite important to the employee's, according to the employee benefit preferences. The current average rate of pay per holiday is $105(945/9=105). Losing one day of vacation pay would decrease the payout from $945 to $840. The two sick paid days are currently costing the company $1050. In option 1, the amount would decrease from $1050 to $840(1050/10=105105x8=840). Also, they will lose a ten minute break in their current work shift. However, by losing the ten minute break they will also be leaving early. Leaving ten minutes early will balance out the loss of a break at an even score in my opinion. Option 2, would bring more financial hardship to some workers. The probationary period alone for health and dental insurance may cause some new employees to seek employment elsewhere for better benefits. Although, neither option would please all employees, option 1 would be the most beneficial to employees without any real detrimental backlash from employees be unhappy with their benefit