5/22/16

Gary Passwater
HRM 301

By: Gary Passwater

By: Gary Passwater

1. Suppose an employer gives employees an insurance discount based on number of hours

of physical fitness activities. Who benefits from the program? Who is harmed? Is this
ethical?

The employer, employee and the insurance company would all benefit from the number of
physical activities that the employee participates in. The employee benefits from the program, as
they become healthier and also receives a discount in their insurance premium. The employer
benefits, as they will have a healthier employee, which could lead to a more productive
employee that misses less work. The insurance company benefits as well, as the employee has
less risk of suffering costly procedures, as they are healthier. This program would definitely be
ethical and many employers currently have similar programs in place.

2. Suppose an employer charges all employees the same premium, regardless of their health
habits. Who benefits? Who is harmed? Is this ethical?

If an employer charges all employees the same premium, regardless of their health habits, then
the insurance company benefits in the sense that the premiums are not discounted. Both the
employee and the employer are harmed as the employer is left with a less healthy employee.

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