Insurance is the present day need of the modern society. Employer-sponsored health insurance is one amongst the insurance schemes in which the employees’ are benefited. It ensures that the employee’s health is protected and the employee avails a sustainable growth. A common reason why the scheme is being offered is on a general concern of the employees’ and their families’ health and welfare, employee productivity, retention and recruitment. On an average, the average cost of insurance that an employee avails is three thousand dollars a year.
Any small business, defined as 2 to 50 employees, must be offered the similar health insurance for small businesses that is offered to all other small businesses. It is impossible to deny coverage to any concern which pays their premium, doing business for at least two months, offering the coverage to all its employees including the part-time workers. It is also the responsibility of the insurance company to inform the minimal number of employees allowed for a plan, so that they have the right to withdraw the amount. The insurance maybe cancelled if the minimal number of employees did not participate.
Any employee avails insurance based on his average age and location. The employer sponsored plans were forced to increase their premiums to keep up with these increasing costs, and there was only so much of it that could be passed on to the employee. The benefit the health insurance expected is closely related with the status of the employee. The unions in companies mandated that health insurance should be provided, while there was no demand from non union companies. This lead to a bad speculation about those companies among the employees. So, employers were forced to offer this as they had to struggle for the best employees. Plans have also been proposed by politicians that would make employers mandatory to offer insurance plans for their employees or to contribute to national plan on a whole that would be modeled after Medicare without any age limitations.
A recent survey found that nearly half of the small business employers in California don’t provide health insurance for their employees. Adding to this, according to a study released by the University of California-Los Angeles, Center for Health Policy Research, there is a decline in the employer-sponsored health insurance coverage scheme from 56.4% in 2001 to 54.3% in 2005,Los Angeles Times dated 11/07/07.The report also stated that 80% of the uninsured employees either work for employers who did not offer them the health insurance scheme, or were not entitled to receive the health benefits. Even more drastic was 20% did not even enroll them in the available insurance plans.
The study also further reported the increase in the premium family coverage by 66% through employer-sponsored plans from 2001 to 2005.Although there was a significant amount of residents availing the benefit of employer-based coverage proportion of Californians who have not insured declined from 21.9% in 2001 to 20% in 2005. The study features the decline to enrollment increases in medicals, the state’s Medicaid program; Healthy-Families; and county-based insurance programs. According to Times, about one in three California children are insured through such programs. The report also stated that 63% of uninsured Californians were U.S. citizens, 15% non citizens having green cards and 22%of the states’ uninsured residents were undocumented immigrants.
Also on the same day the Center on Policy Initiatives released a report stating that about 8.7 million of California’s 17.3 million adult workers do not have employer-based health insurance and 2.9 million do not have any insurance. According to the study, people with high wages were more likely to have the health coverage than the employees with low wages. As a major requirement, Health insurance for employees makes financial sense, as well as motivates employees, keeps them happy and reduces absenteeism.
Employer-sponsored health insurance is in crisis, only informed people shall be benefiting themselves and bring benefit to the country. It is high time all these setbacks are dealt with the perfect plan and strategy.
By: Sam Rosy
Posts Tagged ‘Premiums’
Employer-Sponsored Health Insurance in California
January 30th, 2010Why Having Health Insurance is Crucial
January 14th, 2010
If you’re struggling to make ends meet, you might think you can save a little money by canceling your health insurance policy. While this can certainly save you some money on your immediate monthly expenses, canceling your health insurance coverage or failing to purchase health insurance can have devastating long term effects.
Avoiding Financial Catastrophe
Perhaps the most important reason to have health insurance is to avoid bankruptcy if and when, you develop a major medical problem. The reality is that major health problems like cancer or other serious conditions can cost millions of dollars to treat. If you don’t have insurance coverage in place, you will be stuck having to pay these expenses out of your own pocket. And if you find yourself unable to pay these expenses, you may be forced into bankruptcy or to follow other drastic measures to repay the debt.
Expediting Recovery
When you’re sick or injured, worrying about how you’re going to pay your medical expenses can actually slow down your healing process. After all, the added stress brought on by excessive worry can wear out your body. In addition, you may be tempted to skip certain beneficial medical procedures in order to save money. As a result, you may prolong your suffering, and fail to meet successful treatment. With health insurance coverage in place, you don’t have to be as concerned about finances and you can concentrate on healing instead.
Planning for the Future
Failure to have a health insurance plan in place while you are younger can make it difficult if not impossible for you to obtain health insurance when you get older. This is because most health insurance companies will not provide coverage to a person with a pre-existing condition, a health issue the person had before seeking health insurance coverage.
If the insurance company does issue a policy to someone with a pre-existing condition, that condition may be excluded and the cost of the premiums will be much higher than they would be for someone without a pre-existing condition. If you already have an insurance policy in place before the condition develops, on the other hand, you don’t have to worry about trying to obtain coverage at a later date.
While everyone is aware that the cost of health insurance is on the rise, you truly cannot afford to not have coverage. By shopping around and choosing a policy that only provides you with the coverage you need, however, you can keep your costs affordable while keeping yourself protected.
Discussing your options with a qualified insurance professional can save you grief, worry and money.
By: Steven Klein
Health Insurance For People Over 50
January 13th, 2010
For anyone between 50 and 65 years who will be looking for some health cover or is already looking, you could be in need of a lot of help. This age is crucial in that many of the body’s systems are just about ready to start failing plunging you into serious health challenges. Using statistics (a tool used extensively to create the product structures) insurance companies know that the expenditure on health for the 20 to 45 year-old group will be a lot less than for the 50 to 65 year-old group. Therefore, the premiums for older persons are higher.
Do not despair, as we are smart we will be sure to find a way. Let us look at some options available.
For those who are still working and may be looking at starting a business or going to retire, there are a few areas worthy of your investigating. Does the company you work for allow you to buy insurance through their plan? For early retirement, if the company allows, they may be able to subsidize a portion of the premiums. If there is no subsidy, you may still be entitled to group rates which are less than for individuals. If you spouse will remain in employment seriously look at joining their plan if this is possible.
Another option is COBRA or Consolidate Omnibus Budget Reconciliation ACT, for those still in employment that gives health insurance cover. Former employees and their families can continue the cover for up to a year and a half. COBRA is also guaranteed. You can not be turned down even for chronic illnesses. The downside is the cost. During your employment the employer normally meets 70% of the premium. Own your own you will cover the full premium and administration costs on top. A 1997 survey showed that on average a retired employee would pay $1,008 for family cover and $373 for the individual health cover.
Even if you are not in employment, there are some options open for you. For those with pre-existing conditions like high blood pressure or diabetes who fail to get insurance, coverage is still available through the states’ high-risk program especially set up to help this group of people. Like COBRA, the premiums are quite high.
You should also check professional organizations that you could join or already a member of or are affiliated to see if the membership offers health insurance cover. As this is a group cover, your premiums will be low.
Lastly, the health insurance scheme for individuals. There are now very good offerings in this area as providers believe the 50-65 age group has potential for growth. These individuals also have a fair income and are in good health. Companies believe that even when the oldies become eligible for Medicare, they will still opt for supplemental cover. Some of these options have monthly premiums as low as $200 for individuals in fair health, but carry high deductibles. Some advisors recommend combining opening health savings accounts (HSA) when taking out a cover with high deductibles. HSA contributions are not taxed, nor are any withdrawals made towards qualified medical expenses and the balance at year end can be rolled over to the next year.
By: Jack Adams