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Health Insurance Cost Versus Privacy

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Health Insurance Cost versus Privacy

HRM/546 Human Resource Law
Latisha Clark
February 9, 2016
Mr. Phillip Quintana
In the Midwest part of the state a name Computers by Design (CBD) a small computer system business. The owners of the business have noticed a continuous rise in health care insurance. After doing research, the owners have decided to hire employees that are less likely to make claims, healthy, fit and non-addicted (UPOX, 2016). Abigail along with the other owners have created a two- step program for employees that will include pre-employment screening and a program to assist them a worker to stop smoking and non-prescription drugs (UPOX, 2016). This paper will discuss the legal issues involved with pre-employment screenings. It will also cover the topics of unions, collective bargaining, and Employee Retirement Income Security Act. According to Bennett-Alexander & Hartman, the 14th Amendment states that employees are protected legally from unreasonable searches and seizures (Bennett-Alexander & Hartman, 2007). The owners of CBD need to check the state laws to understand the privacy laws that protect employees and clarify pre-employment screenings before completing a business plan. Computer by Design need to review the Americans with Disabilities Act concerning health information specifics decisions are governed but are restricted by Health Insurance Portability and Accountability Act (HIPAA, 2009). Employers cannot use the under the HIPPA law use protected health information when deciding on employment decisions without prior consent (HIPP, 2009). The protection health insurance further says that employer cannot review employee medical records and identifiable health information under the code of practice (PHI, 2016). By the Privacy Policy of CBD they can only use it is that the person involved in writing authorize the use of such information (PHI, 2016). CBD has to make sure that the policy is in plain language and contain a minimum required, so the authorization is valid for both parties (Bennett-Alexander & Hartman, p.736, 2007). After the review of these laws, the proposal that Abigail wants the candidates to be checked through medical evaluations is illegal and cannot be used to determine an employee’s eligibility (UPOX, 2016). Under the code of practice the protection of employee information, which employer cannot use personal information of employees and codify ethical standards referencing the requisition the matter (ILO, P. 617, 1997). The code of practice further states that an employer is unable to investigate the medical information of a new hire or current employee unless in conjunction with national legislation, medical secrecy, the general principles of health and safety, and only when necessary (ILO, P. 617, 1997). Under national laws or regulations an employer prohibited from completing a diagnostics or genetic testing without explicit authorization (ILO, P. 618, 1997). The code states that: “Genetic screening ... can disclose a series of Personal Data with highly far-reaching Implications for a worker's future. Therefore, be left to the employer's discretion to subject workers to such examinations” (ILO, P. 618, 1997). Drug testing can only carry out only by the law and practice or international standards of the code of practice as an executive order 12564-Federal Drug –free workplace (ILO, pg. 34, 1997). About the Employment Retirement Income Security Act (ERISA) maintenance and investment of benefit of a plan for its employees and their actives under a complex status which contains several specific regulation when establishment (Bennett-Alexander & Hartman, 2007). Under ERISA employee over 21 years of age are to be covered under the employer pension plan after completing one year of employment (Bennett-Alexander & Hartman, p.727, 2007). The owners of CBD when considering changing the insurance for the company have to provide all information to their employees. The business must provide retroactive participation for employees who were not previously reported to be part of the same insurance plan, if there is notice of change in the plan has to be disclosed (Bennett-Alexander & Hartman, p.728, 2007).


Bennett-Alexander, D. D., & Hartman, P. L. (2007). Employment law for business (5th ed.). New York, NY: McGraw-Hill.
HIPAA ‘Protected Health Information': What Does PHI Include? Retrieved from
International Labour Organization Code of Practice Retrieved from

Protected Health Information What is Protected Health Information (PHI)? Retrieved from

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