Employer Health Insurance
Two thirds of the US population benefit from employer health insurance, but the number of the uninsured is still very high and the costs of individual insurance policies keep getting higher. Most of the time, employer health insurance packages represent a way to attract and keep valuable employees, and many companies work on such a basis. Moreover, the benefits provided by an employee health insurance are less expensive than those purchased individually. Plus, there is a higher degree of stability in the employer-sponsored system than in the independent one. There are some requirements that an employee has to meet in order to be eligible for the system.
Thus, among the conditions attached to an employer health insurance we ought to mention a waiting period before the benefits become effective, which applies to new employees, a pre-established number of weekly work hours, a partial contribution on the part of the employee and so on. Health premiums are more rewarding with large companies and corporations, because small firms usually have a reduced possibility to provide employer health insurance because of the very high rates. Many firms that lack insurance coverage often provide a larger wage income to compensate for the health coverage absence.
The majority of workers benefit from employer health insurance coverage, but there is also a considerable number of self-insured that work with companies on the individual market or get coverage through public programs. Many employees cannot afford to pay the high rates that make their share to the premiums sponsored by the employer. This tendency is reflected in the poorer enrollment numbers and it is explained by the decline in incomes, the cost rise of the insurance and people's money awareness. There are many workers that have health insurance coverage through the spouse, which also seems like a good solution as compared to uninsured situations.
Even if most corporations provide employer health insurance packages, the number of uninsured workers has increased over the last years, and the main causes for this decline are the high employee premium contribution and the lower wages. It goes without saying that the higher the contribution, the lower the employee's chances of enrolling. In small firms the premium contribution is with 10% higher than in larger companies. In the individual market, health insurance is more difficult to cover, although lots of people prefer this alternative too. Statistics indicate that if there were a drop in the premium costs, a very high number of employees would enroll in the system of employer health insurance right away.