Employers Try To Offer Individual Health Insurance Instead of Group CoverageSept 2007
Many employers have trouble providing
small business health insurance to their workers because the costs of paying benefits for a handful of ailing employees drive up the premiums for their entire staffs. Now, according to an article at
The Salt Lake Tribune, an entrepreneur in Utah, relying on a wrinkle in U.S. tax law, thinks he has found a way around the problem; he is urging employers to stop offering group coverage at all.
Instead, he suggests that employers help their employees to get individual health insurance. Why? Compared to group coverage,
individual health insurance allows consumers to pick and choose the kind of coverage they need without paying extra for the "bells and whistles" that they'll never use.
Detractors argue that this plan, which is gaining a lot of popularity with companies who can't afford to offer small business health insurance, doesn't account for those people who can't get individual coverage because of previous or existing illnesses. There is some state assistance available for those individuals, and it is true that under state and federal laws those policies can't be terminated for health reasons (something not true with small business health insurance), but no one wants the sick to be left "holding the bag" when they need treatment.
Facts on:
Small Business Health Insurance
Did you know...
An entrepreneur in Utah is urging employers to stop offering group coverage at all?
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The plan has caused quite stir, with some people calling it "blatantly illegal," or even immoral. But, as business owners struggle to balance healthcare costs with the need to insure their workers, individual health insurance is becoming the popular alternative.
For those people who need to purchase an individual plan, it's important to be aware of total costs, including premiums, deductibles, and out-of-pocket costs. It's smart to shop around aggressively, and always be sure to go to your yearly checkups, since it's these appointments that can forestall more serious sickness or disease, and save everybody money in the long run.
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