Healthcare Is One of the Term Paper

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Starbucks has committed to provide healthcare coverage to employees who work at least 20 hours a week. This year, the cost will add up to over 200 million dollars for coverage of its over 80,000 employees. Schultz's perspective, differing from GM is that the company's healthcare accounts for its very low employee turnover and high productivity. However, their generosity is even now bringing down their bottom line, Starbucks is attracting older workers who no doubt join the company for its healthcare benefits. As a result, Shultz notes that Starbuck's future healthcare costs will dramatically increase. Starbucks has seen that their insurance costs have had double digit increases in each of the past four years, and that this growth is completely "non-sustainable." Part of the reason that Starbucks is able to maintain its current healthcare policy is the relative newness of the company and its current lack of retirement healthcare costs. As a result, although their current benefits are generous, their future prospects could be equally bleak as GM's if it continues down this benefits roadmap.

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From the assessment of these two companies it is evident that current healthcare policies are not sustainable in the long-term. Starbucks is only able to maintain current benefits because it does not have as many employees, nor does it have retirees using their healthcare packages. In the coming years they could very easily face the same problems as GM. Therefore, although I believe that healthcare is critical for employees, the current system makes it an unsustainable practice for major corporations. Therefore, either changes must be made on the federal level, or else GM and Starbucks will both have to cut their spending on healthcare.

EDITORIAL: The unkindest of cuts. (2005, October 19). Kansas City Star, the MO). Retrieved September 21, 2006, from the EBSCO HOST Newspaper Source database. (an 2W60442457420).

Moroni, R. (2005, August 29). Foreign Competition May Push U.S. Health Reform.

Grand Rapids Business Journal. 23 (36), p4-4, 1/3p. Retrieved September 21, 2006, from the EBSCO HOST Regional Business News database. (an 18097323).

Yip, P. (2005, October.....

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