Clark Howard's Tips
Prepare to receive less insurance from your employer
April 5, 2005
The shape of health care in the country keeps shifting these days. The term for it now is "cost shifting," which means that costs your employer once paid for are now your responsibility.
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CLARK'S TIP TOPICS
Find more consumer advice in Clark Howard's book, "Get Clark Smart" |
New data shows that the number of people working for companies that pay 100 percent of the premium is dwindling rapidly. In fact, only 18 percent of employers offer health insurance to their employees.
So, there is going to be a huge shift in the medical industry and how people afford health care. The money has to come from somewhere.
That's why Clark thinks employers should no longer pay for our insurance. It's backwards thinking, in his opinion. But, three generations ago, Congress decided to allow employers to take an unlimited deduction on their taxes if they provided health care for employers. It made the company the customer of the insurance company, not the workers.
The system is broken and it needs help. For now, just remember that if you work for a company that has been generous with providing health care, get ready for a lot less generosity in the coming years.
We need to buy our own insurance and companies should receive community ratings that help people choose. The alternative is socialized medicine, and we certainly don't want that.
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