CHAPTER 9 Employee 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 Copyright 2011 Health Administration Press

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) Copyright 2011 Health Administration Press

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) Copyright 2011 Health Administration Press

Overview of Employee Benefits 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 Copyright 2011 Health Administration Press

Overview of Employee Benefits Retirement plans – Qualified retirement plans – Nonqualified retirement plans – Defined contribution plans – Defined benefit plans – Tax-deferred plans Copyright 2011 Health Administration Press

Designing a Benefit Plan Demographics Cost consideration Self-insurance option Managerial implications Communication Copyright 2011 Health Administration Press