What type of research should employers use to determine if they should stop offering health insurance to their employees?
An employer should use both quantitative and qualitative research in making this decision.
One aspect of the decision is quantitative. This is the aspect in which the costs of providing health insurance are measured and forecasted. The employer must try to determine how much it will cost to continue to provide health insurance and to compare that with forecasts for revenues. This will help determine whether the employer can afford to keep providing insurance.
A major aspect of the decision, however, is qualitative. The employer must determine what the impact of this decision will be on the firm’s workforce. The employer must determine if cutting health insurance will affect the firm’s ability to attract and retain good employees. This is something that is less easily done through quantitative research.
This is a very controversial issue that it must be dealt with in the most sensitive way. In light of this, here are some points to consider.
The company must first do research into its own financial wellness. More importantly, the company must seek to benefit its employees as well as possible without going under. So, things like health insurance are essential.
Second, if the company believes that it does not have enough funds to support health care, it should do research on how to cut costs to give health care to its people. Can it consolidate, sell parts of the company, and the like?
Finally, if research shows that health insurance needs to be cut, then they need to start a conversation with the people and proceed carefully.