Employers Shifting Costs of Medical Coverage to Employees
June 2011
Most people know that unemployment has had a terrible impact on
medical coverage in America. Unemployed workers often find themselves struggling with health care when they can no longer access the group health insurance once offered by employers.
But it appears that even the still-employed are facing much higher health care costs.
According to PwC (Pricewaterhouse Cooper), for the first time at least half of American workers will face a deductible of $400 dollars or more for the
group health insurance offered by their employer.
Two years ago only 25% of companies said they asked employees to pay that much for medical coverage.
Medical inflation is predicted to climb by about 9% next year, but
health insurance costs are often much higher. In the midst of the current economic downturn too many employers are unable to absorb these rising costs, and are forced to shift them to their workers.
There has also been a steep jump in the number of employers unable to offer group health insurance to their employees at all.
Facts on:
Group Health Insurance
Did you know...
Medical Coverage deductibles for employed Americans have jumped to more than $400?
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There is much debate regarding whether or not protections for group based medical coverage built into President Obama's health care bill will work. Supporters believe it will lower costs and give workers an outside option in the form of state-managed health insurance cooperatives when their employer's coverage is too expensive.
Critics think even more employers will stop providing health insurance coverage at all and pay fines instead.
Either way, these provisions are not set to become law for two more years, and solutions for workers today are still a long way off.
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