By: Jordan AlkireMcDaniel CollegeJanuary 15, 2o11

Statistics:More than 160 million people-over 60

percent of the under 65 population receive health insurance through their employer.

In 2007, 99 percent of companies with 200 workers or more provided health insurance to their employees.

Information gathered from Kaiser Family Foundation (KFF).

Advantages:People enroll when they take a job, not when

they are sick, which reduces the potential for adverse selection that typically characterizes the market.

Premiums in the employer group market are more in line with medical expenses, versus those in the individual market.

Administrative costs are 10 percent, in comparison to the 25-40 percent for individual premium dollar (cheaper if you do it through your employer).

Advantages Continued:Good for retention and recruitment efforts.

Attracting employees who are searching for effective coverage.

May be a deciding factor in which organization to work for.

Important in the job search-people are looking for health insurance through their organizations.

Improvements in insurance, or offering better coverage as incentive may persuade employees to stay, or work harder.

Weaknesses:47 million Americans were uninsured in 2006,

which was an increase of 8.6 million from 2000.This is driven by the voluntary nature of the

insurance system, and the high cost per-worker, especially by small employers.

Working in small firms and earning low wages-may not be offered insurance coverage.

Small employers face higher premium and administrative costs per worker, and are less likely to offer coverage.

Weaknesses Continued:In 2006, employees in companies with fewer

than 10 people pay an average of 18 percent more in health insurance premiums.

From 2000-2007, the share of business with fewer than 10 employees that offer coverage dropped from 57 percent to 45 percent.What could be done to fix this? Anything? Why

or why not?

More Information:In 2005, 42 percent of workers in firms with

fewer than 50 employees who earned less than $15 per hour and worked for employer that offered coverage, only 34 percent were eligible for coverage, and only about 21 percent actually enrolled in that coverage.Because it was so expensive to enroll due to

the fact that the firm was so small and the number of employees was limited.

Does anyone in here work for a small firm? Is your healthcare cost too much?

Continued:If you are a low-wage worker, working in a

larger company, you are much better off.Nearly 2 in 5 low-wage workers in small

firms remain uninsured; This is more than twice the rate of higher-wage workers in small firms.

17 percent of low-wage workers in large firms are uninsured.

Looking to the Future:Public opinion, as well as leaders opinion

view the need to expand access to affordable healthcare. This is viewed as the most critical domestic policy challenge facing the nation.What changes are being made now?Obama’s healthcare plan?

Certain visits are now covered 100 percent if you have health insurance. Well visits Yearly adult physical screenings

Reference:Collins, S. Healthcare Financial

Management. Dec. 2007, Vol. 61 Issue 12, p34-37.