Employer Sponsored Health Insurance Essay

Employers are able to get a tax break for offering health coverage to their employees

According to Austin and Wetle (2012), employers covered 83% of premium costs for single coverage and 73% for family coverage in 2009. The employee, or beneficiary, paid the difference. Then, the health insurance company pays the provider directly.

Employers should offer affordable( employee premium less than 9.5% of employee’s wages) and of minimum value( employers must pay at least 60% of insurance cost) healthcare benefits to their employees depending on factors like number of FTE, number of employees receiving premium tax credits and other complex measurements to calculate the amounts. Employers should also notify employees by written about State exchanges, and advise them that if an employee decides to purchase a health Plan through an exchange, they may lose the employers’

It has been stated that one of the largest benefits to the Affordable Care Act (ACA) for those that were already insured, is that they may purchase insurance through a marketplace allowing for continuous coverage, regardless of life experiences such as a change in job. Even those that are young, and may not appreciate health insurance because they have coverage through their parents, will need insurance once of age that isn’t dependent upon an employer as they are more likely to change jobs more often. Those that purchase health insurance through an employer offered group coverage could be made to feel as though they are captive to a job in order to continue to receive the insurance that they are accustomed to. Subsequently, the ACA has made health insurance more affordable for those that earn a lower income, making group plans more expensive for individuals, overall.

Health insurance can be very costly, and most US citizens end up getting insurance through their employers due to the fact that they cannot afford to pay for it on their own. Jobs that offer group insurance at a low rate usually have higher sign up rates, but some jobs cannot offer group insurance at a low rate and individuals end up paying higher premiums. With so many US citizens relying on their employers for insurance, unfortunately, not all workers have access to employer-sponsored coverage. The Affordable Care Act (ACA) includes additional employer incentives to provide affordable coverage. Even though the ACA has made it a lot easier for every US citizen to have access to insurance, still millions do not sign up and opt to stay uninsured.

Employer sponsored health insurance is a health policy chosen and purchased by the employer and is provided to qualified employees and their families. Employers usually shares the insurance premium with employers. Employee based health insurance started early as 1910. Before World War II, only a few Americans had health insurance, but it only covered the hospital room, board, and ancillary services. During the war, more employee-based health insurances were being given to employees due to frozen wages by the National War Labor Board worker shortage. Employers were figuring out a way to attract employees to work and stay in their company, which meant that providing health insurance was the best option. Offering health insurance drew

If one wants to understand why the United States is the only developed country with an employer-based health insurance, it becomes necessary to become familiar with the Internal Revenue Code of 1954. "The 1954 code is the document in which the federal government codified into law that companies can provide health insurance benefits to workers tax-free. This action affirmed a 1943 IRS Tax Court ruling that had also decreed health benefits to be nontaxable" (Kliff, 2015).

Employers have to offer coverage to “substantially all” (95%) of their full-time employees.- Employees who work at least 30 hours per week or whose service hours equal at least 130 hours a month for more than 120 days in a year are considered full-time.

Making the decision to offer healthcare insurance to your employees, is not a light decision to make. As an employer, you have to take into account several different factors when choosing the right kind of corporate insurance plans. But if you do decide to get healthcare insurance for your employees, then congratulations, you have just made a very responsible decision, plus you will make your employees very happy. A healthcare insurance plan is also a good investment, since it may keep your employees more healthy. When you are choosing a healthcare insurance plan, you have to consider the following factors.

Employer-based health insurance has dwindled slowly since the 2014 implementation of the ACA. Health insurance in the United States has significantly transformed since the ACA and it’s been the biggest U. S. healthcare system reconstruction since the 1960s

One way to solve this problem is the proposed employer health insurance mandate. Employer based health insurance grew rapidly for a decade after World War II, then grew at a slower rate. Employment based coverage reached its peak sometime in the 1980s and has been declining since then. According to the Employee Benefit Research Institute, coverage of workers ages 18 through 64 fell 2.8 percentage points between 1987 and 1999 (13). Another EBRI series shows a decline of 3.5 percentage points from 1999 to 2004, and a decline of 6.3 percentage points from 1987 to 2004 (13).

Health insurance and employer’s providing insurance benefits for their employee’s has been a debate for a long time. Everyone is asking who should pay for it and who shouldn’t. From my point the employer should pay for health insurance. Why? It is simple, starting with the point that the majority of all the employers are paying low wage salaries to their employees. Also, they are only giving part time jobs. Thus, employers need to give a good reason and incentives like health care insurance that

The employer-based insurance coverage eliminates cost assistance by the employers to the low wage employees which are disadvantageous and to counter this, the employers will avoid marketplace

In this next paragraph we will talk about federal health reform’s impact on employer-sponsored health insurance. Employers now aren’t very sure how they are going to provide health insurance. They are trying to decide whether to go off of the plan they have at this moment or make a new plan. Most of their decisions are going come from the Hawaii experience where they are testing the employer based system. Overall they are going to have to follow the guidelines of the Patient Protection Affordable Care Act before making any major decisions. The purpose of the Patient Protection and Affordable Care Act of 2010 is to cut down the number of uninsured Americans in the United States by making coverage more affordable and more effective. In 2009, 59% of young Americans had employer sponsored health insurance and another 13.8% had private health insurance. Private insurance is when an individual goes to a company and buys health insurance rather than having it supplied with their job. The uninsured were 18.9% of the population under the age of 65 years old. I believe that the reason the number of uninsured people is as high

The cost of healthcare is on the rise and no end to this crisis is in sight. Most people believe all employers should offer health insurance to its employees; however, with the cost of healthcare so high companies who offer these benefits are trying to find ways to offset costs. If all employers did offer health, dental, and life insurance, who would cover the cost? A survey administered by the Commonwealth Fund titled The Public’s Views on Healthcare Reform in the 2008 Presidential Election asked that question to 3,500 randomly selected adults. 70% of people surveyed thought the cost should be shared equally between the employer, employees, and the government. 80% of the people surveyed also thought that if an employer did not offer health insurance they should contribute to the cost of coverage (Lubell, 2008).