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Thursday, March 4, 2010  

Is Group Health Insurance from Employers Fading Fast?

There's a lot of conflicting information out there right now regarding what the American people do and don't want in terms of health care legislation. But one thing is certain, even those group health insurance plans enjoyed by so many workers won't last forever.

It's true that those employees who are lucky enough to enjoy good medical coverage probably don't care as much about health care legislation as those who can't get coverage. Why should they? Group health insurance prices are always lower, particularly when large corporations are able to food the bill, and the coverage is generally quite good.

But as author John Farmer makes clear in his health care editorial, even those great employer based health plans could soon be a thing of the past.

Group health insurance usually has lower prices because the larger pool of people involves minimizes the risk for insurance companies. But Farmer rightly points out that more and more those plans are "slowly vanishing" to be replaced by plans that "require bigger employee contributions."

And as insurance costs go up, some corporations are cutting costs by altering pension plans and minimize other benefits usually enjoyed by employees.



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