Whole Foods Market Case Study
- Importance of the benefits like those offered by Whole Foods to a person working to put themselves through school or collect a pay-check while waiting for a position in a chosen field
Benefits offered by Whole Foods would be important to me in many ways if I was working there to collect a paycheck while looking for a position in my chosen field. It would be an insurance plan which provides me with control over my healthcare money. Therefore, I would be able to enjoy potential tax free earnings, pre-tax payroll contributions to my HSA, tax-advantaged savings for my future health expenses, withdrawals that are tax-free to cover for my health expenses and possible interests on my HSA funds with no “use it or lose it” penalty.
My Money is Under My Control
HSA being a consumer driven health care account, has come out handy because it enables employees to do more with their health care dollars (Health Savings Accounts (HSAs) are a Win-Win for Employers and Employees, n.d.). The money in my HSA belongs to me and that means even if I leave Whole Foods Market for my chosen field, the assets are mine to go on spending or saving on health care needs as I see fit. When employees are allowed to control their plans, they are motivated to work (Griffin, Phillips, & Stanley, 2014). Besides the inspired face, I can still use my account to pay for healthcare expenses while out of the company. It’s my choice.
Just like CEO John Mackey says, high deductibles will also save money for me as a worker. Since there is much expenditure expected before insurance cover, I will be more mindful of how the money is used. Therefore, I will not be quick to visit the hospital just because of a simple cut. In the long run, such savings will be carried forward to the subsequent years. in fact, this forms part of another benefit offered to me by Whole Foods: Since the balances accrued in the HSA accounts can be utilized at the worker’s discretion, to pay for health care expenses at any time, I will be able to access a timely health care insurance presently or in future.
Whole Foods Market Case Study-Sorted Premiums
The company will be paying 100% of my premiums. Following the plan placed in 2006, as long as I became an eligible employee of WFM, I was open to free premiums. So all I will have to worry about is getting the deductible and then access my health care dollars.
Another benefit would be tax free expenses. HAS accounts provide employees with the opportunity to save for qualified medical expenses tax fee (Nathan, 2016). The balance in HSA insurance plans also have the potential to earn interest, which is also free from federal income tax (Health Savings Accounts (HSAs) are a Win-Win for Employers and Employees, n.d.). This way, I will see my money accrue interest even when in my account.
- The negative elements evident in the Whole Foods approach to pay and benefits
The Health Savings Account adopted by WFM brings in several negative elements. First, it comes with a very high deductible requirement. Members are required to pay deductibles of up to $1800. Which means, a worker is likely to be locked out or denied access to health care based on the fact that he or she is unable to pay such expensive amount of deductibles. The difficulty brought about in coming up with the cash to meet high deductible makes it an uphill task for members who may not have such money in their disposal. Thus, the less premiums can be overshadowed by a failure to attain the high deductible requirement.
The pay strategy may also prompt employees to be less resolved in seeking healthcare when needed as a way to limit expenses in deductibles or even in a bid to save the money in the HAS account. Co-CEO Mackey may be right that workers become more concerned of making a meal of small health concerns. However, the awareness may exceed to a point where workers are indeed ailing, but are reluctant to trigger their health insurance.