Voluntary Employees' Beneficiary Associations ("VEBAs")
Questions whether Voluntary Employees' Beneficiary Association's (VEBA's) are beneficial or if they really promote a false prophet for 21st century healthcare funding in the USA.
# 119324 | 2,422 words | 13 sources | APA | 2010 |
Published on Apr 19, 2010 in Economics (Micro) , Political Science (U.S. Federal Politics) , Medical and Health (General) , Law (General)
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This essay briefly describes what a Voluntary Employees' Beneficiary Association (VEBA) is. The author discusses the perceived advantages and disadvantages associated with such a system, and the possible impact of modern VEBA's both for American healthcare consumers and providers.
From the Paper:"In plain English, a VEBA is a pre-funded tax free pre and post retirement medical expense account used by employees and their dependents for future health and welfare costs. This is in direct contrast to the more common and traditional method of 'Pay-as-you go' healthcare funding that current exists for the majority of businesses in the USA. A VEBA has been considered by many as nothing more than a way for an employer to contribute tax-free to a fund that can be used to purchase health and welfare benefits for its employees, the equivalent of "a lockbox filled with cash that can only be withdrawn to pay for health care costs or other welfare benefits like life and disability insurance." However, this simple analogy hides many of the intricacies and issues currently surrounding VEBAs and their renewed popularity.
"Given VEBAs general lack of recognition and limited up take, it will come as a surprise to note that they have been available in the USA since 1928. Initially, Union organizations were prominent in establishing the majority of VEBAs to provide benefit plans for their members. However, various business owners, large corporations and small companies have all introduced VEBAs to take advantage of the tax exemptions. Instead of VEBAs primarily offering a method of funding healthcare for employees, it has regularly been used as a tax-efficient financial planning tool by wealthy individuals as a method to protect their assets. In order to address many of the abuses that occurred, the Federal government introduced extensive restrictions and limitations in both 1984 and 1986."
Sample of Sources Used:
- Borzi, P (2009) Retiree Health VEBAs: A New Twist On An Old Paradigm Implications for Retirees, Unions and Employers. March
- Chassen, A (1991) Funding Retiree Health Benefits Management Accounting; Mar 1991; 72, 9; ProQuest Health Management pg. 20
- Duquette, R, Balestrier, S (1992) An Old Idea Makes a Comeback. Management Accounting. Montvale: Dec 1992. Vol. 74, Iss. 6; pg. 48, 5 pgs
- Ghilarducci, T. (2007) The New Treaty of Detroit: Are Voluntary Employee Benefits Associations Organized Labor's Way Forward, or the Remnants of a Once Glorious Past? New Labor Market Institutions and the Public Policy Response: A Symposium to Honor Lloyd Ulman Berkeley, California
- Kaiser/Hewitt Survey of Retiree Health Benefits, 2006,"Retiree Health Benefits Examined," p. 20, Exhibit17 (Dec. 2006).
Cite this Analytical Essay:
Voluntary Employees' Beneficiary Associations ("VEBAs") (2010, April 19) Retrieved April 22, 2019, from https://www.academon.com/analytical-essay/voluntary-employees-beneficiary-associations-vebas-119324/
"Voluntary Employees' Beneficiary Associations ("VEBAs")" 19 April 2010. Web. 22 April. 2019. <https://www.academon.com/analytical-essay/voluntary-employees-beneficiary-associations-vebas-119324/>