M3C Identification of managerial, financial, legal and ethical Essay

M3C Identification of managerial, financial, legal and ethical implications - Essay Example Health insurance has its challenges in the world today and many organizations in the world today face many problems due to the insurance policy. Problems are sometimes evident when the employees of various companies or organizations are taxed much more because of the high living standards today. Problems that are financially related to the health insurance scheme, the ethical and legal implications faced by the people using the health insurance scheme. Problems basically come into an organization when employers do not involve their employees of the increase in the cost of the scheme. It could be effective if the employers are told what would happen prior to the imposture of the tax. Pilzer (2005) also goes ahead to say that in 2006 instead of an employer sponsored group plan, some employers are offering defined contribution health benefit plans whereby the employer simply reimburses the employee; tax free, for the cost of their individual and family policy. This effectively lowers the cost of individual or family policy up to fifty percent since an employer receives tax deduction and the employee is not taxed on the reimbursed amount. Most people today with individual and family policies are paying their premiums themselves without an employer which costs them twice as much on the after tax basis. These majorly affect the employees of an organization financially. In some countries today the taxation is mostly imposed on any employee working with the government sector or a private sector. The policy is usually discussed by the ministry of health and becomes effective on the date passed by the relevant parties. Here, they are taxed on a monthly basis and this could be a disadvantage and a disadvantage to some. The insurance fund benefits the whole family and helps in paying hospital bills for someone who is sick. The major problem crops up in an organization when the premiums are increased after