Compliance With the Patient Protection and Affordable Care Act
Midwest Education is an American manufacturer and supplier of educational materials. The company has focused on the learning tools and systems used in technology, science, and business classrooms. Midwest also offers manuals, books, videos, hardware, and software used in technology education, business applications, and instructional development. There are three major divisions of the company: Manufacturing division, Transportation, Service, and Maintenance division, and Creative Development division. The companys headquarters is located in Kansas City, and the manufacturing plant is located on the outskirts of Kansas City. The transportation, service and maintenance division has its headquarters in Texas and other branches located in Phoenix and Baltimore. The creative development division is located in Massachusetts and California. Overall, the company has 416 employees located in the three major divisions. The Manufacturing Division has 158 employees, the Creative Development Division has 123 employees, and the Transportation, Service, and Maintenance Division has 135 employees (Fischer, 2013). Additionally, 71 employees are working at the Kansas City headquarters.
The key values of the company are cost reduction, innovation, and quality enhancement. Each division exemplifies one of these values. The Creative Development Division will exemplify innovation, Manufacturing Division exemplifies quality enhancement, and Transportation, Service, and Maintenance exemplify cost reduction.
Viewpoints Presented
The first viewpoint presented is for the company to pay the penalty of $2,000 (minus 30) and let employees source for their own insurance through state exchanges. The second viewpoint is that the company offers healthcare insurance but has a two-tiered program where certain employees pay a bit more due to their destructive lifestyles. The company focuses on cost-cutting, and it makes sense for the company to have its first option as the one that will reduce its overall expenditure. Paying the penalty is cheaper than having to source and pay for the healthcare insurance of all its employees. Understanding the significant values of the company will assist us in knowing why it finds this option as most favorable. The focus is on ensuring the company does follow the healthcare act as stipulated and allows employees to source for their insurance. In the end, the company will have managed to reduce its current insurance bill, which is around $10,000 per employee. Considering the option of saving $8,000 per employee, the company would come out in a favorable position since it would have saved its operating costs.
The disadvantage of following this option is that the company will likely lose some of its best talents. As the Creative Development Division heads have indicated, it is hard for them to compete with the Silicon Valley companies, which offer numerous benefits to their employees. The company will find itself unable to keep up with...
…and still offer coverage to all its employees.Resolving The Viewpoint Differences
To better resolve the differences between the two viewpoints, the division heads should analyze each viewpoint from their divisions perspective. The analysis should incorporate the costings for each in terms of payments for insurance and costs of losing or hiring new employees. Each division can create a pros and cons table for each viewpoint and then make its presentations. The analysis will be geared towards uncovering the benefits of each viewpoint from a division perspective. Division heads understand their divisions better, and they can determine how each viewpoint would impact the division. Giving them the chance to analyze each viewpoint allows them to uncover things or issues they could not have predicted or seen had they not performed the analysis. Even the Creative Development Division could discover their proposed viewpoint might be unfavorable for the division over time and make them change their viewpoint.
Midwest Education CEO can also make an executive decision to implement one of the viewpoints if she sees there is no clear way forward. Cost-cutting and delivering high-quality products should remain the overall objective of the company. Therefore, whichever strategy is selected, it better be one that will ensure the company can continue being competitive and produce quality products now and in the future. The executive team should only interfere in decision-making if there is still…
References
Fischer, A. K. (2013). Resolving Healthcare Issues In Compliance With The Patient Protection And Affordable Care Act. Journal of Business Case Studies (JBCS), 9(6), 449-456.
Hofmeister, M., Franke, M., Koerner, C., & Singer, R. (2017). Single crystal casting with fluidized carbon bed cooling: a process innovation for quality improvement and cost reduction. Metallurgical and Materials Transactions B, 48(6), 3132-3142.
Ristic, M. R., Selakovic, M., & Qureshi, T. (2017). Employee motivation strategies and creation of supportive work environment in societies of post-socialist transformation. Polish journal of management studies, 15.
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