Reducing the cost of employees health care in manufacturing industries / Sonny Kushairi ... [et al.]

Health care cost is the cost incurred by companies due to employees on sick-leaves. Companies incurred direct and indirect costs due to the above reason. The direct cost comprises of : i. Employee's salary: The company has to pay for the salary of the employee on sick-leave. ii. Provision of medical benefits / hospitalizations: In this area, the company has to provide the employee with sufficient medical supports in cases where employee suffer from ill health. The benefits range from expenses as an outpatient for minor ailment treatment to the heavy cost of other major treatment. The major medical expenses include prescription drugs, dental care, care for drug abuse and alcoholism, vision care and the use of maternity clinic. iii. Disability payment: This refer to the payment made by the company to compensate the employee who is affected by physical, chemical and biological hazard. The frequency of this claims have increased markedly and there is a growing pattern of claims that are much more difficult to adjudicate. The disability based on excess stress from job, the lower back problem which is hazard to diagnose but claimed to prevent the employee from returning to work.