India classifieds, free classified postings, business directory, yellow pages
india news, india tour
indian matrimonial listings
Free Classifieds
  Home   All Classifieds    Visit Forums    US Classifieds    Indian Classifieds    Articles    Feedback 
Jokes | Discuss Movies | Latest Classifieds | Resources | Health Articles | USMLE Forum

  to fill out a simple form to connect to Classified Postings in your area.

If you have a flair for writing, you may also post an article by clicking on Post Article. We will review your article and publish it if we find the contents relevant to this website. The article should be penned by you. It should not have been copied from any other site.

Loss disguised in Victory

Posted on:10/20/2005
Written By: Lalit Goel
Website: http://www.saagii.com/
By merely transferring the healthcare costs onto the employees and retirees and savings itself $1 billion per year the company may have won short term victory and relief; the jury is out if this will stop hemorrhaging and turnaround the GM fate.


On the same day the world largest auto maker, General Motor, reported a loss of $1.6 billions dollars on $47.2 billion revenue it also reached an agreement with the GM UAW on healthcare costs. The cash savings by transferring higher portion of the healthcare cost to employees and retirees are estimated at approximately $1 billion per year.

The company expects to spend $5.6 billion, representing less than 3% of the revenue, on healthcare this year. GM 3% healthcare expenditure dwarfs the national healthcare expenditure of $1.7 trillion dollars representing 17% of national GDP. Clearly, GM has done better job compare to rest of the nation in healthcare cost containment.

By merely transferring the healthcare costs onto the employees and retirees and savings itself $1 billion per year the company may have won short term victory and relief; the jury is out if this will stop hemorrhaging and turnaround the GM fate. The healthcare cost is not a large part of the problem facing GM it is the absence of products with performance that the customers want.

While GM and other US auto makers continue to suffer and loose market share, Toyota, Honda, and others continue to gain market share and remain profitable. The loss or gain in market share coupled with maximum utilization of resources ultimately drive profits or losses.

Instead of forcing worker to accept concessions and passing the healthcare cost onto their most valuable assets, the employees, there may be other ways to lower the total cost of healthcare i.e. offering flexibility to their retirees to choose from offshore medical care providers (healthcare services costs in India are less than one third of U.S. costs), give employees choices to self insured for ambulatory care (not same as consumer driven healthcare plans) and insure them for unexpected events. In doing so, GM may clear the path for reducing the healthcare costs that are permanent, substantial, do not impose financial burden to their employees and retirees.

 


  
Classified Postings   Show All articles

  to fill out a simple form to connect to Classified Postings in your area.

 
Channel for Jobs, resumes
Ace Any Job Interview Work-At-Home Jobs Resume Writing Help
 
Technical Reviews
Camcorder Reviews Cell Phone Reviews Notebook Reviews
Camera Reviews Peripherals Reviews Computer Systems Reviews
 
Articles on programming, developer tools etc.
.Net Programming Articles Webmaster Resources Download Developer Tools
Viruses News Market your website Graphics, Design and Publishing SW
 
Video News
Video News Home and Living Videos Most Watched Movies
Most watched Autos videos Future Vehicles Automotive News
 
Health Channel
Women's Natural Health News Men's Health Herbal Health
Latest Health News Medical Tourism Health Insurance News
Beauty Health Tips
 
Channel for real estate, personal finance, business etc.
Personal Finance Real Estate Articles US Economy
Stock Markets Starting a New Business Business Research/Advice
 
Immigration Channel
H-1B Visas News UK Immigration News
 
Other Channels
Travel Forum/Guide India Cricket News Oddly Enough
Latest Classifieds Most Emailed News India Entertainment
Indian Movie Reviews Relationships Indian Astrology
 
Blogs
Astounding Viewpoint Technology & Gadgets Family Delights
Glimpse of China
 RSS Feeds  |  Articles  |  Jobs  |  Leads
SiteMap  | Trading Partners | Post Classifieds  | FAQ || View All Classifieds  | Success Stories  | Press Releases
 | Resources | Kids
Copyright © 2005. “SuperIndian.com ”. All rights reserved.

...