When deciding whether Bay Ltd should be fully insured company or a self-insured company there are some ethical decisions that go into answering that question. The biggest thing effecting whether companies become fully insured or self-insured is the Affordable Health Care Act. The Act is very complex and does not favor companies such as Bay Ltd, which puts the company in the position where they could begin to act unethical because of the intense demands. This is illustrated when companies choose a health care plan this now puts companies under high amounts of scrutiny because health care is such a big issue in the United States, the government is putting large companies underneath a microscope now. When a company chooses to be self-insured this means that the government is not regulating their employees' health care and the company is in charge of their own health care because of this this allows the companies much freedom in how they regulate their insurance, so companies could forge documents in order to get tax breaks or offer the bare minimum to their employees so as to get the most money back. .
Bay Ltd. Right now is currently self-insured. Some ethical issues they are dealing with is that higher insurance premiums are being charged to single people compared to individuals that have dependents; companies not offering health insurance and taking a penalty, and companies giving less work hours to employees so that they do not have to offer health insurance. Many employees feel that this is unethical and shouldn't face penalties for this. Instead Bay should be offering deductions for people with dependents not higher premiums for single individuals. Bay must understand that even though this practice may help the bottom line this is a short term fix. People want to work for a company that puts their interests before profits, and employees are the most precious resource a company can have they will suffer in the long wrong because good employees will not want to work here and leave for competitors.