Employees Face Increased Burden For Health Plans
The recession hit business hard and they are looking for ways to cut costs. One of the ways is to shift more of the burden for healthcare benefits to their employees.
Healthcare costs have spiraled out of control with a recent study from the Kaiser Family Foundation finding that premiums for the average family have risen 131% over the last decade. With premiums far outpacing inflation, it’s a trend that many Americans won’t be able to keep up with for long.
When asked about their plans for next year, 21 percent of offering firms say they are “very likely” to raise workers’ premium contribution next year, and 16 percent say they are “very likely” to raise deductibles. Just 4 percent say they are “very likely” to restrict eligibility for coverage, and 2 percent say they are “very likely” to drop health coverage altogether.
Nearly 7 million Americans have lost their jobs already during the recession and even with COBRA insurance allowing most to keep up with their coverage, many are finding the burden just too much to bear. Both the employed and recently unemployed are finding it necessary to cut their health benefits in order to make ends meet.
Although the healthcare debate has been controversial at times, the majority of Americans are in support of healthcare reform. While it seems the debate has stalled somewhat, the President is still hoping that something can be done by the end of the year.
It is vital that Congress finds a way to get cost under control. We already have a sizable portion of the population unable to afford health insurance, if we have another decade like the last, that percentage will rise appreciably.
