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Health and Small Business Case Study

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Healthful Small Business and Health Insurance

Eugenia H. Snead

Southern New Hampshire University

A common issue facing midsize to small employers today is health insurance coverage. John and his wife, Liza are small business owners of a boat repair business, who are quite busy since the recession with the upkeep and repairing of older boats in the area. Business is so good Liza hired a young woman to assist her with paperwork. John and Liza are wondering if they can afford to hire an additional mechanic (Robert), who happens to be the best applicant for the open boat mechanic job. (Spencer, C.S. 2014)
The purpose of this paper is to analyze the options for John and Liza from all angles. There are many issues in this case such as legal implications, ethical, and addressing it from a pure business standpoint. To illustrate the choices that John and Liza have let’s consider a hypothetical scenario that John and Liza employs 6 employees full time and Robert would be the 7th. Currently the company offers health care benefits paying 100% of premiums at an average cost of $5,000 per employee.
OPTION 1
The company could continue to absorb the costs of the health insurance premium and do nothing. * At an estimated cost of $7,000 per employee, the company would have to absorb the full $49,000 cost or pass along part of the cost to its employees or customers.
OPTION 2
The company could encourage the men to quit smoking and provide incentives for them to quit. One way to work through this is to offer sickness insurance. The main goals of the Affordable Care Act are numerous. One of the intended outcomes included – Prevention & Wellness. There are significant components of the legislation which provides incentives to provide for wellness and preventive medicine. (Summary of Affordable Care Act, April 2013)

OPTION 3
They could ask the smokers to

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