Health Insurance Articles
What Are Some Of The Benefits Of Employer-managed Health Insurance
2010-03-17
Employer-managed health insurance is one of the best deals available for consumers today. It is so good that healthcare reform may be cutting into its benefits shortly. The New York Times had an article discussing possible taxes to employer health insurance coverage, and conflicts from dozens of consumer interests trying to fight these taxes. This article is only one example; many more can be found every single day. There are also the normal benefits that come from having negotiating leverage. However, health insurance is anything but a normal negotiation.
For the purchaser, when health insurance comes as an employer benefit, it seems identical to purchasing a policy from an agent - there are different levels of health insurance coverage, there is a cost per month, co-pays, and networks. What is not stated is that the employer is paying a significant portion of each employee's health insurance. This eliminates the need for employees to pay that amount for their own coverage. Politicians realize that this is a tax-free income, and they have made many attempts to begin taxing it. Eventually, a tax on this benefit will pass and health insurance will lose its tax-free status. Therefore, if employer health insurance is available, it would be wise to act immediately.
There are also the inherent advantages of negotiating as a group. First, an insurance company will give better prices for a large group, especially if that group tends to be healthy. Also, the company's negotiator will sift through the many plans and present the best options. In the current health system, there are numerous plans, jargon, and the bottom line is often about the same. Having someone who isn't concerned about a commission to negotiate this is helpful for purchasers. Finally, employers are required to cover spouses and dependents. For a family, employer health plans are significantly less expensive that purchasing through an agent.
The American health system has massive problems; this is one of the few things politicians agree about. BusinessWeek ran a story titled, "Lessons of a $618,616 Death."It quotes Uwe E. Reinhardt, a professor who says, "No other nation would allow a health system to be run the way we do it. It's completely insane."Employer Health Insurance is one of these examples. This free money is not likely to last forever. If the option exists, people should get a health insurance quote as quickly as possible, sign up for a plan, and save extra money in case the situation changes in the near future. Without its tax-free status, employer-managed plans are still beneficial, but not nearly to the same degree. Action is they key to ensure you are saving money with health insurance.
