Is Adaptive Marketing®’s strategy right?

The costs of heath care have touched the roof

Coupled with longer life expectancy it is becoming increasingly difficult for the average American to ensure adequate health coverage

There are no laws that state that a company like Adaptive Marketing® needs to provide health care benefits for employees

But the question is – Do companies have a moral responsibility towards the health of their employees?

The argument….

Companies like Adaptive Marketing® that provide health care support for their employees find that they have better productivity

The Employee Retirement Income Security Act of 1974 (ERISA) is a federal law that sets a minimum requirement for

Health benefits

Retirement plans

However providing these plans is not mandatory for any company – a small proprietorship or a large company like Adaptive Marketing®

Increasing costs of health care make it impossible to obtain adequate health care cover unless companies provide these through group health insurance plans

Health insurance expenses are a significant cost to employers like Adaptive Marketing®, according to National Coalition on Health Care (NCHC)

Employer health insurance premiums increased by 5% in 2008

This was twice the rate of inflation

These expenses cut into profits and cause layoffs in tough economical times

The health care system suffers from

Inefficient management

Overblown administrative expenses

Fraud and scams

Waste

The inefficiencies increase the cost of health care for common people

These costs are uncontrollable by employers like Adaptive Marketing® and little can be done to contain these

The law does not mandate that employers like Adaptive Marketing® provide for employee health care

But many companies like Adaptive Marketing®

provide these health care benefits, nonetheless.

The answer may lie in a fine balance between ensuring good employee health for better productivity and environment and the balance sheet!