Employee Health Coverage – Part 1

Employee Health Coverage – Part 1

doctor looking at x-rayOne of the biggest expenses for a business is health insurance and that’s just going to get worse as the costs continue to rise.  But why do businesses offer health insurance?

Health insurance offered by businesses began during World War II.  At the time the federal government was trying to keep businesses from price gouging and other despicable acts, by imposing controls on wages and prices.  That made it hard to compete for good workers.  To get around those limits businesses offered health insurance as a benefit and it was a major one.  People loved it.

People became used to businesses offering health insurance and began to expect it.  Now if any business wanted to compete for those good workers they pretty much had to offer health insurance too.  But businesses are well aware of what a huge drain health coverage has become on their finances and are trying to find ways to pay as little as possible.  They have continually increased the premiums that the worker has to pay, raised the co-pays and lowered the coverage in an attempt to lessen the amount the company pays.

Those who are profiting by protecting businesses have been pushing the idea for the businesses that making employees pay more makes them more pro-active in their health care.  They say that employees are less likely to go to the doctor for every little reason.  The truth is that the vast majority of people don’t go to the doctor as often as they should even when they do have health insurance.  What increasing the cost does is cause the employee to go to the doctor even less, even to put off medical attention until they end up having to be hospitalized.

This trend is going to continue.  Businesses are going to find more and more ways to get out of paying as much as possible.  Employees are going to end up with more and more of the cost until they can’t afford to get medical attention at all and are forced to depend on home remedies for almost everything.  We need to find a better way.

To be continued…