CHAPTER 9 Employee Benefits Brief Historical Background Major Federal Legislation Overview of Employee Benefits Mandatory Benefits Voluntary Benefits Health

Copyright 2011 Health Administration Press

CHAPTER 9Employee Benefits

• Brief Historical Background• Major Federal Legislation• Overview of Employee Benefits• Mandatory Benefits• Voluntary Benefits• Health Insurance• Other Health and Welfare Benefits• Retirement Plans• Designing a Benefits Plan


Historical Background

• Social Security Act (1934)• Employer-Sponsored Benefits (1950s)• Employee Retirement Income Security Act

(ERISA 1974)• Consolidated Omnibus Budget Reconciliation

Act (COBRA 1986)• Health Insurance Portability and

Accountability Act (HIPAA 1996)


Overview of Employee Benefits

• Total compensation: the value of the employee’s base salary plus the value of the benefits package

• Mandatory benefits– Social Security– Medicare Part A– Unemployment– Workers’ compensation

• Voluntary benefits– Leave benefits (e.g., vacation, sick, family, and medical

leave)



• Health benefits– Health insurance– Mental health coverage– Wellness and fitness programs– Dental and vision coverage– Prescription drug benefits– Flexible spending accounts– Long- and short-term disability insurance– Long-term care insurance– Life insurance



• Retirement plans– Qualified retirement plans– Nonqualified retirement plans– Defined contribution plans– Defined benefit plans– Tax-deferred plans


Designing a Benefit Plan

• Demographics• Cost consideration• Self-insurance option• Managerial implications• Communication

Documents

CHAPTER 9 Employee Benefits Brief Historical Background Major Federal Legislation Overview of Employee Benefits Mandatory Benefits Voluntary Benefits Health