Personal Liberty Digest™ will be upgraded this weekend to reflect a dynamic new look and mobile-friendly viewing to enhance your experience! Plus, we'll be providing even more of the compelling content you've come to expect, delivered in a whole new way!

  Comments Subscribe to Personal Liberty News Feed Subscribe to Personal Liberty
 

Employers Scale Back Insurance Contributions By Axing Family Plans

February 25, 2013 by  

Employers Scale Back Insurance Contributions By Axing Family Plans
PHOTOS.COM

Most employer-supplemented health insurance plans have long given workers the option either of electing single-patient coverage for themselves or a family plan that includes spouses and children.

If you have a job with employer-sponsored insurance, you likely know the difference in cost between an individual coverage policy and a family policy. And that difference — for yourself and, often, for your employer — is vast.

If you aren’t a government employee and your employer is paying half your single-coverage premium (or more), the chances are good that they’ve made a very conscientious — perhaps even a financially painful — decision to assist you with your healthcare costs. Take offense, but call it charity.

Yet the exigencies of the changing healthcare business are gradually informing many employers’ decisions to scale back their contributions to employee premiums.

Most often, the self-imposed frugality is coming not in the form of business owners reducing their contributions to individual premiums. Rather, employers are eliminating sponsored family coverage policies altogether, while focusing on what they can do to keep individual coverage affordable.

A Marketwatch story attributes the change to employers who anticipate absorbing increased per-patient expenses as the timeline for the Patient Protection and Affordable Care Act slowly unfolds. Historically, many employers have offered subsidized coverage only to their own workers’ individual plans — if, that is, they have working spouses who’re eligible for single coverage at their own jobs.

But with Obamacare proffering health coverage even for those who don’t have jobs — and there are plenty of spouses who don’t — companies that once offered family coverage are, understandably, finding less incentive to go the extra mile.

Research and analysis released Friday by the Gallup-Healthways Well-Being Index concludes it’s still difficult to predict how pervasive such changes could ultimately become or how Obamacare policies will affect employers’ decisions:

Beginning in 2014, under the Affordable Care Act, large employers will be required to pay a fee — called an “assessment” — if they do not provide adequate insurance coverage and their employees receive tax credits to buy their own insurance. Whether this creates an incentive for employers to provide affordable coverage, or whether they will simply pay the penalty remains unclear, thus the future direction of the employer-based insurance rates in the U.S. is yet to be determined.

But human nature is self-interested, and it’s reasonable to expect that many employers won’t voluntarily subsidize insurance policies for those spouses who soon may be covered by an expanded Medicaid program.

Much will depend on just how damaging the new law’s punitive “assessment” fees may wreak on small businesses’ bottom lines.

Ben Bullard

Reconciling the concept of individual sovereignty with conscientious participation in the modern American political process is a continuing preoccupation for staff writer Ben Bullard. A former community newspaper writer, Bullard has closely observed the manner in which well-meaning small-town politicians and policy makers often accept, unthinkingly, their increasingly marginal role in shaping the quality of their own lives, as well as those of the people whom they serve. He argues that American public policy is plagued by inscrutable and corrupt motives on a national scale, a fundamental problem which individuals, families and communities must strive to solve. This, he argues, can be achieved only as Americans rediscover the principal role each citizen plays in enriching the welfare of our Republic.

Facebook Conversations

Join the Discussion:
View Comments to “Employers Scale Back Insurance Contributions By Axing Family Plans”

Comment Policy: We encourage an open discussion with a wide range of viewpoints, even extreme ones, but we will not tolerate racism, profanity or slanderous comments toward the author(s) or comment participants. Make your case passionately, but civilly. Please don't stoop to name calling. We use filters for spam protection. If your comment does not appear, it is likely because it violates the above policy or contains links or language typical of spam. We reserve the right to remove comments at our discretion.

Is there news related to personal liberty happening in your area? Contact us at newstips@personalliberty.com

Bottom
close[X]

Sign Up For Personal Liberty Digest™!

PL Badge

Welcome to PersonalLiberty.com,
America's #1 Source for Libertarian News!

To join our group of freedom-loving individuals and to get alerts as well as late-breaking conservative news from Personal Liberty Digest™...

Privacy PolicyYou can opt out at any time. We protect your information like a mother hen. We will not sell or rent your email address to anyone for any reason.