Uninsured employee rate on the rise
April 17, 2009 by Bill MeltzerPosted in: Healthcare costs, In this week's e-newsletter, Latest News & Views
With each passing year, it becomes harder and harder for many firms to cover all of their employees.
For the seventh straight year, the percentage of employees and their dependents with employer-sponsored health coverage has decreased, finds a new report by the Economic Policy Institute (EPI).
Since 2000, the rate has dropped from 68.3% to 62.9%. In real numbers, that means 4.1 million more uninsured employees. Employers dropping coverage is only one factor in the decrease.
Others include prohibitively high cost shares, increased waiting periods for coverage, decreased COBRA use and employer incentives for employees to line up their own coverage.
The EPI report also looked at employer healthcare coverage in each state and found sizeable decreases in 41 of the 50 states. The states most affected:
- Maryland
- Missouri
- North Carolina, and
- South Carolina.
These states suffered declines of a little more than 7%.
April 17th, 2009 at 7:32 am
It is unfortunate that health costs have sky rocketed and made it impossible for a growing number of employers unable to offer benefits, yet I saw in a recent survey that over half of those that responded indicated they would not support a health care plan that would leave no one without coverage. This is a very sad situation.
April 23rd, 2009 at 11:34 am
Unfortunately it is not only the provider’s costs that have increased. Much of the cost associated with prescription drugs is the solicitation of the meds to these providers. EVERYTIME I have been to a healthcare clinic in the last four years there is at least two drug reps there with items that will increase the overall cost of prescriptions. These items range anywhere from oodles of free samples, handfuls of advertising paraphernalia, and high priced catered lunches for the entire office staff. It is also unbelievable to me that even with the tightening economy these sales visits have not slowed in numbers nor in “freebies” that we all end up paying for in the end. It is sad that these providers do not refuse these types of things in order for pharmaceutical companies to keep their costs down.
April 23rd, 2009 at 3:55 pm
As of January 1, 2009, drug companies voluntarily stopped providing anything to other than educational material to healthcare providers. They do still provide lunches (often pizza or subway). In reality, it costs millions of dollars in R&D to get one drug developed, tested and approved by the FDA. Then they spend millions more advertising on TV and in magazines.
In addition, part of the high cost of healthcare is the “middleman”. (the insurance company or the government) the cost to administer these plans is exhorbitant. Many insurance companies make more in profits than they pay to the healthcare providers. The cost to doctors and hospitals to deal with all the insurance companies and Medicare & Medicaid eats up 10- 20% of their payment.
The current system is not sustainable and their is plenty of blame to go around. All parties, including patients, must be open to new ways to obtain healthcare.
May 1st, 2009 at 9:08 am
I work for a large corporation. This corporation requires that all employes have health care coverage through the corporation. Family coverage is voluntary. It is a condition of employment
May 1st, 2009 at 9:48 am
As an Administrator of a healthcare facility and the person responsible for our employee benefits package this article is not a suprise. We are a mid size company; we do offer a full benefits program however we are not self funded due to our size- the medical rates that we have seen over the past five years have been extremely high but so has our utlization. I think that as consumers we must move past the entitlement mentality for healthcare. As I get ready to find a way to obsorb yet another cut in Medicare and Medicaid reimbursment to our facility I am certain that government programs will not work- however fair prices and consumers who realize that like servicing thier cars, repairing thier homes or clothing thier families there is a cost compoent to healthcare. There is nothing free about this system and if you want to continue to see new developments in treatment, medications and other aspects you should not be wishing for full goverment controll.
May 1st, 2009 at 10:43 am
I run a small medical group and I know that more and more of my employees are dropping their health insurance, even with the 50% portion that the employer covers. As the premiums go up and the coverage goes down, it is disheartening. I have patients complain to me about the dr pricing, however, they do not see the other side. As a medical group, we are contracted with many well known health plans and we are getting hit from all sides, cutting our income down to the negative. Example: One state health plan we get $14.25 per patient, that’s all enclusive! Exam, counseling, minor surgery and x-rays… And I keep hearing the politicians comment about cutting down health care costs…