ASAP
First read
and understand the case. Then write a summary of the case you are
analyzing and then answer all the questions appended to the case, (As it
is mentioned in your "Detailed Schedule" this case is the
case study in Chapter 6, Page 233.)
Solution
Case study- The whole Truth
Summary
This is a case study related to whole foods market which
started working in 1980 with 19 employees and one store. The company gained
huge success and is reputable as a socially responsible company and among best
companies to work for. The company has a core value to protect the consumers
and to provide the workers with love and respect. The company has a generous
healthcare plan for every employee. The high deductible and health saving
account plan is discussed.
1. How important would benefits like
those offered by whole foods be to you if you were working there to put
yourself through school or to collect a paycheck while looking for a position
in your chosen field?
The
whole foods market is part of Fortune magazine’s list of “100 best companies to
work for” since 1998. The company has repute as socially responsible company
and a goof place of work. The company has a core value which puts the customers
first and then the employees. There are two principle followed by the company i.e.
to change the way people eat and to create an atmosphere of love and respect
for workers. The benefits like a generous health plan offered by the company
are very important. The health program of the company is based on high
deductibles and the HAS or health saving account. The employee or worker is
required to pay deductible before spending on other expenses. Some employees
opposed the plan of high deductibles. Later, 77 percent of employees gave
consent to the high deductibles as it saved money for health related issues
like emergency visit and so on. Health is very important in overall
functioning. The worker who is healthy can function better, particularly in
multi tasks when worker needs to attend school and other positions as well.
2. What negative elements do you see in
whole foods approach to pay and benefits?
The
health saving account is similar to personal saving account, but the health
saving account allows spending on health related problems only. The HAS can be
helpful when the medical issues include range of medical, dental or
psychological illnesses. The employer or any other person can add to health
saving account. Pretax amount is usually transferred to the health saving. The
withdrawal of amount form health saving account is free of tax. The money saved
in health saving account is available even if a person changes a job or
insurance premium. The negative feature of the health benefits offered by
company like HSA is that there is a pressure to save. The high deductible plan
is expensive. One must keep record of expenditures on health problems.
3. Why don’t more companies use the
approach to employee healthcare pioneered by whole foods?
As
depicted in the case study, it is difficult for employees to pay for high
deductibles and health saving accounts. Not every company is willing to provide
employees the benefit of health saving, becusse the health saving account needs
fund from employer other than deductibles. The health saving account is
available for the employee even if he/she leaves the job. Overall, this plan is
not affordable.
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