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16 Nov 2015, 07:44
Kudos
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The following appeared in a memo to the Saluda town council from the town’s business manager:
“Research indicates that those who exercise regularly are hospitalized less than half as often as those who don’t
exercise. By providing a well-equipped gym for Saluda’s municipal employees, we should be able to reduce the cost
of our group health insurance coverage by approximately 50 percent and thereby achieve a balanced town budget.”
Discuss how well reasoned . . . etc.
A business manager wrote to the Saluda Town Council that the group health insurance coverage
can be reduced for Saluda's municipal employees. The business manager proposes this based on
the rerearch that indicated those who exercise regularly are less likely to be hospitalized.
The proposal made by the business manager is flawed and has several shortfalls. This opinion
needs to consider several key factors.
First of all, the business manager makes a generalised assumption that after introducing a
new gym for the employees of municapal council, all the employees will register for the
membership and exercise regularly. Even if the council promotes the benefits of fitness
training and gets success and making employess register for gym membersip, it is difficult
to tell whether the employees who have registerd will follow necessary fitness schedule.
So, instead of providing a well equiped gym, the council should focus on generating interest
for fitness among employees.
Second, the business manager proposes to cut the insurance coverage of employees by 50 percent
based on a past resarch that makes a generalised statement about health of a ramdomly chosen
individuals. There is not data about the health or fitness habits of the employees of municipal
council. May be the employees are aware of the benefits of fitness training and get less hospitalized
compared to standard average of those who get hospitalized. There is also a possibility that
employees get hospitalized due to some other reason such as road accidents. Reduction of
insurance coveragein these cases is not a good idea.
The memo mentions that the employees have group health insurance. This means that the
employees may have registerd their immediate family members under the group insurance.
The manager's proposal does not contain information whether the employees use the insurance
for themselves or for their family.
Thus, the manager's proposal lacks many key points based on which a definite judgement about
cost cutting of the insurance coverage of employees can be made. If all the above points are
considered then the memo will hold solid evidence to cut down insurance coverage expenses.
“Research indicates that those who exercise regularly are hospitalized less than half as often as those who don’t
exercise. By providing a well-equipped gym for Saluda’s municipal employees, we should be able to reduce the cost
of our group health insurance coverage by approximately 50 percent and thereby achieve a balanced town budget.”
Discuss how well reasoned . . . etc.
A business manager wrote to the Saluda Town Council that the group health insurance coverage
can be reduced for Saluda's municipal employees. The business manager proposes this based on
the rerearch that indicated those who exercise regularly are less likely to be hospitalized.
The proposal made by the business manager is flawed and has several shortfalls. This opinion
needs to consider several key factors.
First of all, the business manager makes a generalised assumption that after introducing a
new gym for the employees of municapal council, all the employees will register for the
membership and exercise regularly. Even if the council promotes the benefits of fitness
training and gets success and making employess register for gym membersip, it is difficult
to tell whether the employees who have registerd will follow necessary fitness schedule.
So, instead of providing a well equiped gym, the council should focus on generating interest
for fitness among employees.
Second, the business manager proposes to cut the insurance coverage of employees by 50 percent
based on a past resarch that makes a generalised statement about health of a ramdomly chosen
individuals. There is not data about the health or fitness habits of the employees of municipal
council. May be the employees are aware of the benefits of fitness training and get less hospitalized
compared to standard average of those who get hospitalized. There is also a possibility that
employees get hospitalized due to some other reason such as road accidents. Reduction of
insurance coveragein these cases is not a good idea.
The memo mentions that the employees have group health insurance. This means that the
employees may have registerd their immediate family members under the group insurance.
The manager's proposal does not contain information whether the employees use the insurance
for themselves or for their family.
Thus, the manager's proposal lacks many key points based on which a definite judgement about
cost cutting of the insurance coverage of employees can be made. If all the above points are
considered then the memo will hold solid evidence to cut down insurance coverage expenses.
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