Tag Archives: group insurance

IS EMPLOYER HEALTH INSURANCE DYING?

One of President Obama’s most frequent health reform mantras is, “If you like your health care plan, you can keep your health care plan.”  This is consistent with his belief that we “must build on the current employer-based system” that insures 158 million people who comprise the vast bulk of all privately insured Americans. There is just one problem with this approach: employer-provided group insurance is dying and cannot be saved. Despite its longstanding dominance, group insurance, whether self-funded or provided by outside insurers, suffers from major flaws that are increasingly exposing its fundamental unsuitability as an even partial solution for effective health care reform. This is true for all employers, no matter what size. Here are group insurance’s more pronounced shortcomings:

1.    Lack of Portability: Group insurance ties the individual to his or her job, an anachronism in an era when people change their jobs as often as their cars. And if you lose your job through layoffs or illness, you soon lose your insurance as well. If you can’t find affordable individual coverage, then welcome to the ranks of the uninsured.

Posted in Health Costs, Health Insurance, The Health Care Crisis | Tagged , , , , | 5 Comments