Theses, Dissertations, and Capstone Projects

Year of Award

1991

Degree

Master of Business Administration (MBA)

College

College of Business & Professional Studies

Degree Program

Business

Department

Business Administration

Keywords

employee, employer, cafeteria, insurance, reimbursement, coverage

Abstract

This paper presents a study of Corporate Flexible Benefit Plans to combat increased health and other benefit costs. The soaring costs of health care have placed a constraint on Corporate America. In 1989, spending for health care rose to $604.1 billion, up 11.1 percent from 1988.

For business, their share of health costs continue to creep upward compared with other payers, despite many changes they are making in the provisions of employer-sponsored health insurance to their employees.

Business have a difficult choice when confronted with rising health care costs. Good insurance packages are expensive, but are needed to compete successfully for good employees.

To finance these increases employers are offering employees flexible benefits-a strategy that can cut taxes, widen benefit choices, and lessen the impact of rising health costs for employers and employees alike.

As health and other benefit costs continue to rise, employers can determine what portion of the added cost to absorb and what portion to pass on to employees, thus gaining control over future costs.

Document Type

Restricted Thesis

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Creative Commons Attribution-No Derivative Works 4.0 License
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