Employer-Sponsored Health Benefits

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The steady rise of healthcare costs and the ever increasing cost of health insurance premiums are making it harder and harder for employers to pay healthcare premiums for their employees. In the past, it was almost a given that employers picked up the tab for health insurance coverage. The health coverage was usually exceptional with little or no money paid out of pocket by the individual for the insurance premiums. Those appear to be the “good old days”, with fewer and fewer employers shelling out money for health insurance premiums and demanding a larger percentage to be paid by the employee. Other employers are simply unable to financially provide healthcare coverage for their employees and have stopped all together. The first health insurance plans began during the Civil War in the mid 1800’s, with the earliest plans only covering against accidents related to travel via rail or steamboat. Eventually, plans became more elaborate, covering all illnesses and injuries. In 1929, the first modern group health insurance plan was formed. In Dallas, Texas a group of teachers contracted with Baylor Hospital for room, board, and medical services in exchange for a monthly fee. And in 1932, Blue Cross and Blue Shield offered group health insurance plans for the first time (Neurosurgical Medical Group, 2007). Employee health benefit plans flourished in the 1940’s and 1950’s. Unions bargained for better benefits, which included tax-free, employer-paid health insurance. When war hit between 1939 and 1945, government froze wages which led to an increase of group health care. Since employers were unable to attract employees with higher wages, employers decided to improve their benefits package by adding health care coverage. Gove... ... middle of paper ... ...gery Medical Group. The history of health insurance in the united states. (2007). Retrieved from: http://www.neurosurgical.com/medical_ history_and_ethics/history/history_of_health_insurance.htm The Commonwealth Fund. New report: employer-sponsored health insurance premiums increase 119% from 1999-2008. (2009). Retrieved from http://www.commonwealthfund.org/Content/News/News-Releases/2009/Aug/ Employer-Sponsored-Health-Insurance-Premiums-Increase-119-Percent.aspx Tully, S. (2010). Documents reveal AT&T, Verizon, others, thought about dropping employer-sponsored benefits. Fortune. Retrieved from http://money.cnn.com/ 2010/05/05/news/companies/dropping_benefits.fortune/ Wolfe, L. (2011). Barack Obama’s health care plan and how it affects employers. About.com Women in Business. Retrieved from http://womeninbusiness.about.com/od/ womenspolitics/a/Obama-employers.htm

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