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More workers opting out of company health plans
http://lifeinc.today.msnbc.msn.com/_news/2012/05/24/11835959-more-workers-opting-out-of-company-health-plans?lite
Ninety percent of uninsured workers said they didn't have insurance because it was too costly.
The weak economy continues to have a harsh effect on workers’ access to health insurance -- not necessarily because workers aren’t offered it but because they can’t afford it.
A new study from the Employment Benefit Research Institute finds that 55.8 percent of employees were getting health insurance directly from their employer as of April 2011, the most recent data available. That’s a nearly 5 percentage point drop from December 2007, when the economy first went into recession, and the researchers said early research shows that the number probably fell further.
The drop comes after more than a decade in which the rate of employees getting insurance in their own name held steady at around 60 percent.
It appears that it’s the cost, not the availability, of health insurance that is the primary thing keeping workers from getting insured. Ninety percent of uninsured workers said they didn’t have insurance because it was too costly.
The study was based on government data on workers age 18 to 64.
Paul Fronstin, director of EBRI’s health research and education program, said many employers have been gradually asking employees to foot more of the bill for their care through higher deductibles and co-payments.
“Employers have changed their focus to managing cost by changing the quality of the coverage that’s being provided,” Fronstin said. “You see more cost shifting and more employee responsibility when it comes to the cost of health care services.”
He said monthly premiums have not necessarily risen as much, but neither have wages. That may mean people feel like they are forking over a bigger slice of their paycheck for an insurance plan that requires higher and higher deductibles and other out-of-pocket expenses.
“It’s the value of the plan that’s changed more than the premium,” he said.
Some who drop their employer’s coverage may be switching to cheaper private plans or getting covered by a spouse, partner or parent. The percentage of workers who are covered as a dependent on someone else’s plan has held steady at around 17 percent.
Others may just be giving up health insurance altogether.
As the job market becomes stronger, some employers might start offering better health care benefits to compete for key employees.
But Fronstin noted that because employers generally make decisions about health care coverage six months to a year in advance, any improvements will likely lag quite a bit
Ninety percent of uninsured workers said they didn't have insurance because it was too costly.
The weak economy continues to have a harsh effect on workers’ access to health insurance -- not necessarily because workers aren’t offered it but because they can’t afford it.
A new study from the Employment Benefit Research Institute finds that 55.8 percent of employees were getting health insurance directly from their employer as of April 2011, the most recent data available. That’s a nearly 5 percentage point drop from December 2007, when the economy first went into recession, and the researchers said early research shows that the number probably fell further.
The drop comes after more than a decade in which the rate of employees getting insurance in their own name held steady at around 60 percent.
It appears that it’s the cost, not the availability, of health insurance that is the primary thing keeping workers from getting insured. Ninety percent of uninsured workers said they didn’t have insurance because it was too costly.
The study was based on government data on workers age 18 to 64.
Paul Fronstin, director of EBRI’s health research and education program, said many employers have been gradually asking employees to foot more of the bill for their care through higher deductibles and co-payments.
“Employers have changed their focus to managing cost by changing the quality of the coverage that’s being provided,” Fronstin said. “You see more cost shifting and more employee responsibility when it comes to the cost of health care services.”
He said monthly premiums have not necessarily risen as much, but neither have wages. That may mean people feel like they are forking over a bigger slice of their paycheck for an insurance plan that requires higher and higher deductibles and other out-of-pocket expenses.
“It’s the value of the plan that’s changed more than the premium,” he said.
Some who drop their employer’s coverage may be switching to cheaper private plans or getting covered by a spouse, partner or parent. The percentage of workers who are covered as a dependent on someone else’s plan has held steady at around 17 percent.
Others may just be giving up health insurance altogether.
As the job market becomes stronger, some employers might start offering better health care benefits to compete for key employees.
But Fronstin noted that because employers generally make decisions about health care coverage six months to a year in advance, any improvements will likely lag quite a bit
I would suspect that the reason some opt out is because opting in means cutting back in other places. Paying their rent/mortgage perhaps, or food? Let's face it, when someone is living minimum wage and trying to raise children, they may not be able to afford their part of the premium. No?
That was the case with my former employer. Every year they'd shop around and end up covering less of the premiums.
My current employer, in 6 years has only shopped around once and even they trimmed the fat a little bit.
Since I am double covered (wife's policy covers all of us) I asked them to consider canceling my policy, and splitting the money with me at a 60-40 split (benefiting me) since I havent had a raise.... NO dice!
My current employer, in 6 years has only shopped around once and even they trimmed the fat a little bit.
Since I am double covered (wife's policy covers all of us) I asked them to consider canceling my policy, and splitting the money with me at a 60-40 split (benefiting me) since I havent had a raise.... NO dice!
You are exactly right teko...With Jason's employer, the benefits cover 90% which is excellent. It costs us a pretty penny every pay period but the reassurance that I have medical is worth it for me...
It seems like every year when it comes to renew, the employers are reducing the package available and covering less of the premiums. Once upon a time, the benefits were worth more than the hourly wage. You took a job based on how good the benefits were. Now days the benefits are not all that at most places. You might get a plan that covers seventy percent of not much of a plan. So I can understand why people are going private, but private only works if your healthy as far as affordability as well.
If I didn't have insurance, I'd be royally screwed. With my health issues (specifically kidney related), I'd be in some serious trouble if I didn't have health insurance.
Only costs me $25 a paycheck ($50/month). My company subsidizes the rest, if you can believe that, as an incentive. In my mind, it's worth it's weight in gold.
Not having access to health insurance is one thing, but having access to it, and opting not to take it, is something completely different.
I'm not sure about you guys, but no matter what the cost, I'd keep/hold onto my health insurance coverage come h3ll or high water.
Okay, at some company's, health insurance isn't cheap, but I think it's incredibly short sighted of people to opt OUT of coverage, because the first thing that goes wrong, they're going to be stuck with a $50,000 hospital bill.
Oh yeah... they just won't pay it, causing the hospital to have to write it off, causing them to raise their prices, causing insurance premiums to go up, causing the amount a company pays per-employee to increase, causing the company's output $$$ to be higher, causing less $$$ available for raises and investing back into the company, causing me not to be able to get a raise.
See how someone opting out of health insurance effects YOUR bottom line?
I know there's more to it than that, and it's a lot more complicated in how it works, but that's basically how it trickles down into my pocket (or NOT into my pocket!).
Only costs me $25 a paycheck ($50/month). My company subsidizes the rest, if you can believe that, as an incentive. In my mind, it's worth it's weight in gold.
Not having access to health insurance is one thing, but having access to it, and opting not to take it, is something completely different.
I'm not sure about you guys, but no matter what the cost, I'd keep/hold onto my health insurance coverage come h3ll or high water.
Okay, at some company's, health insurance isn't cheap, but I think it's incredibly short sighted of people to opt OUT of coverage, because the first thing that goes wrong, they're going to be stuck with a $50,000 hospital bill.
Oh yeah... they just won't pay it, causing the hospital to have to write it off, causing them to raise their prices, causing insurance premiums to go up, causing the amount a company pays per-employee to increase, causing the company's output $$$ to be higher, causing less $$$ available for raises and investing back into the company, causing me not to be able to get a raise.
See how someone opting out of health insurance effects YOUR bottom line?
I know there's more to it than that, and it's a lot more complicated in how it works, but that's basically how it trickles down into my pocket (or NOT into my pocket!).
We are all covered through my husbands insurance at work. It costs us about $230 every pay period (Every 2 weeks) for the "High option" Medical, Dental, and Vision...YES it is steep BUT I'd rather pay it and be covered than opt out...I can't risk myself, Jason, or the kids getting sick then getting stuck with a HUGE A$$ bill....
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