Question
You are the associate director of a large, nonprofit multipurpose social services organization that employs more than 100 people (professionals, paraprofessionals, and support staff) at
You are the associate director of a large, nonprofit multipurpose social services organization that employs more than 100 people (professionals, paraprofessionals, and support staff) at various sites. The agency has always provided noncontributory health insurance to its employees, in part to compensate for its relatively modest salaries. In recent years, the organization has experienced increased fiscal challenges due to cutbacks in government grants and contracts, a decrease in full-fee clients, and increased operating costs.
The Board of Directors has mandated a 10% cut in the agency's budget during the next fiscal year and expressed a preference for making cuts in employee benefits rather than cuts in services or staff. A primary target of these cuts would be health insurance. It argues that under the new health care law employees would be able to purchase coverage through the state's insurance exchange and that most employees would be eligible for subsidies for this purpose. Depending on the type of coverage selected (and how much they were willling to pay), the agency's employees could obtain coverage equal to, greater than, or less than the coverage the agency currently provides. Under the new law, the penalty the agency would pay for not providing coverage would be less than its existing costs. The executive director has asked for your views on this matter.
- What would you recommend?
- What values would guide your decision?
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