Free Risk Management Insurance Essay Sample


Risk is universal and found in all economic activities of businesses, governments and individuals. Risk management techniques are used along the limited resources for the economic wellbeing. People in the enterprises use the quest to achieve the security and reducing the uncertainty.

It has been found in studies that employees are more responsible to contribute in health care costs. In 700 companies, 40% employees intend to increase the contributions in health insurance while equal number of employees wants to increase the sharing in medical cost. Enterprises are making changes to shift the increasing responsibilities for the health care towards the employees. The cost per patient is increased at 9.5% in 2010. There are various trends which are pushing the cost up and down. It has been revealed in the studies that reforms taken for the health care will have less impact on these costs.

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Reimbursement from the government towards the medical care providing centers will be declined in next year's as the study revealed. Hospitals will make differentiation between the private patients and those sponsored by the employers. Cost is also inflated by the short term positive trends. Mergers between the physicians and hospitals will provide the greater efficiencies and lowering the costs. Employers are making high deductions from the employees. Companies have also increased the proportional sharing of cost from the employees.

HIPAA stands for the health Insurance and Accountability act which has given impression to many people about the policy guarantee if they leave the job. Two step processes is very crucial for these achievements. COBRA is the Consolidated Omnibus Budget Reconciliation Act which has ensured that workers after leaving the job can get health insurance facility for the 18 months. They get the same benefits as they were getting during they worked there. COBRA also covers the other benefits of spouses for 36 months. A disabled person on a social responsibility can get health insurance for 29 months. COBRA act is not applicable on federal and small firms where the number of employee is fewer than 20 employees.

HIPPA is known as the Health insurance Portability and Accountability Act. This act allows the group coverage offered by the new employers. Secondly it allows the leaving employees to maintain their insurance policy. Under COBRA act a family costs is $21000 annually. COBRA is costly for both former employee and employer. It discourages the employers to hire the new employees because an employee with short period can get the benefits under the COBRA act. Currently the COBRA rights are extended which provided the job linkage. However the COBRA is ineffective when an employer goes out of business the continuation of the coverage become unavailable. For the family coverage of medical care the COBRA is must to be availed for it. This act is beneficial for the companies which hire the employees as the medical care costs are reimbursed.


In this paper the health care problems are discussed with respect to COBRA and HIPPA acts. Current states of employers and group coverage are also included in this paper. Current state of economy in terms of COBRA act is discussed with the extension of this act.


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