Employee healthcare plans are dropping dead fast
Filed under: Insurance, Career, Health
It's going to be a while before (and if) the Obama Administration can put its healthcare-for-all plan in place, but I wonder if any employers will still be offering healthcare plans by that time. A new survey out this month by workforce research firm Hewitt Associates found that 19% of the 343 employers it asked are planning to stop offering health benefits over the next three to five years. That's a fourfold jump from just last year, when only 4% were planning an exit strategy. (Thanks, Workforce.com)
For those who still offer health benefits for the employees they don't lay off, keeping workers healthy is the major workforce issue this year, up from #2 on the list in 2008. Actually the term they used is "promoting employee accountability" and the specific health conditions they're going to be on the lookout for in their workforce are asthma, cardiovascular disease, depression and diabetes. So don't expect free doughnuts on Friday even when the economy bounces back, but maybe they'll keep the mental-health counselor on staff?
Regarding their thoughts about the Obama plan, 60% said the federal government should take the lead on healthcare reform, while 33% said the Feds and the states should share responsibility. Half of them say Obama's healthcare proposals will affect their current healthcare strategies -- although evidence shows that his latest moves are already having an effect.
That's because as part of the stimulus package recently passed, Congress is requiring employers to pay 65% of workers' COBRA insurance premiums for nine months (this applies to workers laid off between September 1, 2008 and December 31 of this year.) Employers can recoup that money from the government through a payroll tax credit or direct reimbursement, but a Crain's Cleveland Business article says the problem for businesses is paying those costs up front. Lawyer Patti Weisburg says the mandate could slow down hiring in better times because up-front premium costs are making employers lay off people in the first place. "Our small companies can't even get a loan to do business," much less afford COBRA premiums.
No doubt, it's tough all around for employers, their remaining employees and everyone else temporarily out of the workforce. There's no clue about what it will take to lasso this sinkhole of a problem. Until government tries out its own remedy for health insurance, the best bet for all of us is to work out regularly, eat right and keep as sane as we can.
Reader Comments (Page 1 of 1)
3-18-2009 @ 9:20PM
Peanut Santiago said...
There will come a time when few people will get healthcare at work. Sooner or later we will have national healthcare...aka socialized medicine...aka whatever you want to call it. ****** I have seen it coming for a long time just like non-smokers gaining more rights for being in the majority. ******** Too many people I know already do without health care. Too expensive to buy it for yourself.
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3-18-2009 @ 11:10PM
Irish said...
Eating right and working out to keep fit doesn't work if you've been injured and have a lifelong medical condition. I was a healthy 27 year old when an uninsured, unlicensed, irresponsible teenager slammed his car into mine causing a neck injury severe enough to warrant major surgery and a lifetime of severe nerve pain in my eyes, neck, shoulders, and arms. For the past 19 years I've been in and out of medical facilities trying to maintain my pain. I've been in the hospital 16 times in the last year for radial ablation of nerves to deaden pain that is severe enough to wish for death because the pain is that unbearable. What happens to me? I lose my job because of this recession, get another with much less pay (a whopping $ 27,500/yr), my home business finally flopped because loans stopped for buyers, and my insurance company decided to raise my self-employed individual policy rate from $558/month to $ 662/month - FOR A SINGLE POLICY!!!!!!! DURING THE WORST RECESSION we've had since the GREAT DEPRESSION!!! So much for that stimulus Obama gave us, huh!? We get $13.00 a week and the government PERMITS health insurance companies to PILLAGE people's paychecks!!!!! OUR GOVERNMENT GIVES BILLIONS TO A FINANCIAL INDUSTRY THAT REAPED BILLIONS THROUGH DECEIT, THEFT, AND GREED. What do I do now? Can't qualify for Medicare, Medicaid, and NO other insurance carrier will take me. Can't go without or I'll either kill something or myself to rid the pain when it kicks in after a year (ablation only lasts that long). Can't find that irresponsible teenager and take everything he'll ever learn in his lifetime. Seems like credit card usage is coming up and no payments will be made because I can't afford it and I'll be forced into bankruptcy! Can you believe a hardworking American who has led a responsible life all her life has to even contemplate giving her only 11 year old child up for adoption, sell her home, or consider or wishing for death, because of health insurance!? WHAT THE HELL kind of "American Dream" is that? "DO EVERYTHING RIGHT, WORK HARD, and YOU'LL BE REWARDED." What a crock of SHI*!!!! I went into debt for an education. I never used social services. I ALWAYS carried my own weight. I have ALWAYS lived responsibility. I have ALWAYS lived BELOW my means. I have ALWAYS saved my money. And now, I've lost my son's 529, went through ALL of my savings, and will now lose my home soon, and have no insurance! What the HEL* kind of GOVERNMENT do we have?????? I should become a welfare recipient or a criminal - either way, I'll have my medical care!!! American people should be beyond angry. Our government has betrayed every last one of us. They get their lifetime salaries, medical care, life insurance, mini-mansions, special treatment, exotic vacations, and what does the hardworking honest American middle-class person get? FORCED BANKRUPTCY, NEGLECT, AND POVERTY. I WANT MY DAMN BAILOUT. I WANT MY GOVERNMENT to GIVE ME AN AVENUE FOR HEALTH CARE. I didn't do ANYTHING to deserve the pain I'm in except be in the wrong place at the wrong time and the person who creamed me - he's probably skirting through life without a care in the world and my life has been misery. WHEN do the GOOD GUYS win? I WANT JUSTICE - I WANT A JUST GOVERNMENT - I WANT EVERY SINGLE HARDWORKING AMERICAN TO RECEIVE THEIR JUSTICE. I FEEL SO BETRAYED BY MY GOVERNMENT TO HAVE BEEN SO NEGLIGENT IN TAKING CARE OF ITS PEOPLE. IT IS TIME TO STAND UP AND DEMAND THINGS BE MADE RIGHT AND JUSTICE BE SERVED TO EVERY GREEDY CORRUPT ORGANIZATION AND EVERY PERSON RESPONSIBLE FOR THE STATE OF OUR COUNTRY TODAY. I CANNOT BELIEVE OUR GOVERNMENT IS CHOOSING TO FEED BILLIONS OF OUR FUTURE DOLLARS TO THOSE THAT HAVE STOLEN ALL THE WEALTH OF THIS COUNTRY!!!! IT'S UNCONSCIONABLE!!! We have been too complacent America - It's time to start demanding that our government ACT...and ACT NOW. THEIR LIVES HAVE BEEN WAY TOO EASY - TOO COMFORTABLE. They sit in their offices, in their committee meetings and take YEARS to decide ANYTHING. THEIR LIVES AREN'T AFFECTED by the decisions they make, BUT OURS ARE! IT IS TIME AMERICA FIGHTS BACK!!!!!!!!!!!!!! I AM ENTITLED - YES, ENTITLED - TO MEDICAL COVERAGE BECAUSE DAMN IT - I'VE WORKED FOR IT - I'VE WORKED FOR MY COUNTRY - I'VE PAID MY TAXES - I'VE ADHERED TO ALL LAWS OF THIS LAND. I DESERVE AND AM ENTITLED TO HEALTHCARE. THERE...it's out, and I still don't feel ANY better...nor do I have ANY possible idea how I'm going to keep my insurance. The oncoming pain that will be here soon when my treatment fades scares the living hel* out of me. I am that terrified...and MY government has done that to me!!!!! God doesn't bless America - PEOPLE do - and WE HAVEN'T IN A LONG LONG TIME!!!!!!!
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3-26-2009 @ 6:56PM
Blueeyes2 said...
Irish, You know the ills of severe life long pain, so do I. FOR 25 years.... I give you kudos and thanks for getting the word out on how ALL OF US who have to deal with pain and fear and worry where our next bite of food will come from. Those of us who have been embarssed beyond any one could imagine as we look so tired and worn out from the DAILY STRUGGLE of getting out of bed. Going from one doctor to the next searching for HOPE OF RELIEF from the medical world. Now here's a real kicker.... in my life social security sends me a letter that I AM 135% BELOW THE NATIONAL AVERAGE OF BEING LOW INCOME. But the state I live in will only alllow $85.00/month for food stamps. How am I suspose to wash my hair...because it's not and ediabled item...go figure... NOTHING FOR MEDICAIDE BECAUSE I GET $15.00 TOO f*&*^ MUCH FOR MEDICAIDE HELP. Obama says change is on the way.....I WONDER IF WE WILL LIVE TO SEE IT.....Stem Cell research??? What about food? What about us getting our self respect, our self esteem, and EVERY THING WE WERE BEFORE "THE ACCIDENT"....
3-19-2009 @ 4:20PM
Troy Breiland said...
Millions of Americans who lost their jobs prior to September 1, 2008 could not afford Cobra. Millions more elected Cobra but have now depleted their resources and can not continue on. Still millions more with pre-existing conditions who rely on cobra to bridge the 18 month gap between their former employers insurance and their state's high risk insurance pools are struggling to pay their premiums every month to prevent being locked out of insurance permanently.
Please join us in asking Congress and the Obama administration to eliminate the arbitrary September 1, 2008 cut-off date and 9 month limitation of assistance by signing our petition at http://www.ipetitions.com/petition/cobrareform and telling your friends about our efforts.
For more information please see our website at http://cobrareform.weebly.com.
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4-13-2009 @ 8:14PM
rmarie said...
At the company i worked for when people leave the company they are offered Cobra which cost between $500-$700 a month. Most people just do not have that kind of money to put out every month. And you still have to end up paying a lot more money out of your pocket. So I found this affordable discount health plan and it is a God send. It is so great and has help me saved so much money. Now I'm able to get affordable healthcare. go and check it out. www.EveryOneBenefits.com/rms
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3-28-2009 @ 9:33AM
Sav said...
There is an option to no insurance. National discount programs are hugely effective and can save as much as 85% on dental and healthcare. Hospital stays can save up to 90% or more.
You don't have to be without coverage. See what provider base and fee schedule your state offers at www.deliveringonthepromise.com/summerm
Anythings better than paying out of pocket. Plans $14.95 to $39.95 monthly.
Sav
SavingOnHealthcare@gmail.com
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4-11-2009 @ 4:26PM
mike m said...
rmarie's comments amount to an adverstisement. The co. that she apparently owns may provide a beneficial plan, but it is NOT insurance --ADVERTISEMENT ONLY !!!
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4-11-2009 @ 2:49PM
MIKE M said...
I worked for a company for 31 years, all the while thinking that the retiree benefits included a health insurance program. At 60 year of age & likely uninsurable elsewhere, I have just be advised that they are dropping their Retiree Health Insurance Benefit -- mid-year, so we will get to incur two "sets" of deductibles should we find insurance elsewhere. I worked a lot of years & sweated a lot for those folks that are making these decisions today. If it were not for people like me, they would not even have the positions that they have today. CEO's, etc. are ruthless and care nothing for anything but themselves ! They are not entitled to the "big buck" that they demand -- notice not "that they deserve."
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5-18-2009 @ 9:32AM
StrangeBrew said...
Here is the remedy…Somebody pass this on to the President…This is what should have been done with the $85,000,000,000 bailout given to AIG. …Instead, they should have given $85,000,000,000 to America as a ""We Deserve It Dividend"".
To make the math simple, let's assume there are 200,000,000 bona fide U.S. Citizens 18 years and older. Our population is about 301,000,000 +/- counting every man, woman and child. So 200,000,000 might be a fair stab at adults 18 and up.. So divide 200 million adults 18+ into $85 billon that equals $425,000. give $425,000 to every person 18+ as a "We Deserve It Dividend".
Of course, it would NOT be tax free. So let's assume a tax rate of 30%.
Every individual 18+ has to pay $127,500.00 in taxes. That sends $25,500,000,000 right back to Uncle Sam. But it means that every adult 18+ has $297,500 in their pocket.
A husband and wife has $595,000.
What would we with do with $297,500 to $595,000 ?
Pay off your mortgage –OR BUY A HOUSE….BAM! Housing crisis solved !!
Buy a new car - create jobs, save Detroit…
Repay college loans – CREDIT CARDS…BAM! what a great boost to the economy!!!
Invest in the market - capital drives growth
Put away money for college - it'll be there, student loans dissolved………
Save in a bank - create money to loan to entrepreneurs.
Pay for medical insurance - health care improves
Enable Deadbeat Dads to come clean - or else
Remember this is for every adult U S Citizen 18+ including the folks
who lost their jobs at Lehman Brothers and every other company
that is cutting back. And of course, for those serving in our Armed
Forces.
If we're going to re-distribute wealth let's really do it...instead of
trickling out a puny FEW DOLLAR economic incentive….
If we're going to do an bailout, let's bail out every adult U S Citizen 18+
instead of giving astronomical BONUS’S to the very ones that led us to financial devastation.
As for AIG - liquidate it.
Sell off its parts.
Let American General go back to being American General.
Sell off the real estate.
Let the private sector bargain hunters cut it up and clean it up.
Here's my rationale. We deserve it and AIG doesn't.
Sure it's a crazy idea that can "never work." Because BIG Government has been bought off. But can you imagine the Coast-To-Coast Block Party! How do you spell Economic Boom? I trust my fellow adult Americans know how to use the $85 Billion
more than the geniuses at AIG or in Washington DC .
And remember, The Family plan only really costs $59.5 Billion because
$25.5 Billion is returned instantly in taxes to Uncle Sam.
Ahhh...I feel so much better getting that off my chest. pass this on maybe it will land in the right hands………..
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6-05-2009 @ 4:15AM
Elite Health said...
Hello All, I am 32 years boy working in a multinational company. In these times of recession, company was thrusting a lot amount of work on us. It some times make me helpless, than getting over timed. And because of such a constant pressure since 4-5 months, a lot of changes (both physically and mentally) had occurred. I was loosing weight like hell. Also, sometimes I became too harsh on my family, which was one of the primary concerns to me. Also, I was feeling something wrong near my chest. My heart beats remained constantly high throughout my working hours due to high work pressure, and fear of deadlines. This makes me nervous all the time. And because of this, I was not able to concentrate fully on my work. So, this was harming all the way round. This stress is killing me everyday. And I was in no condition to leave the job. And all above this, I was not able to keep myself physically fit, which in my case may lead to loosing away the job. I took many leaves that month due to my unfit health. I was really in a very pathetic situation. And to my surprise, I came to know that many of my colleagues were facing the same problem, as the work load and stress level was diminishing everyone’s health. That became a major issue after few months. The overall performance was deteriorating. The issue was brought in the meeting of board of directors. They decided to have a corporate wellness program which would take care of the employee’s health at the corporate office itself. This decision really went up to the mark. The therapist and physicians used to take care of the minor corporate health issues. And after a week or so, the result was astonishing. The employee efficiency not only got back to normal, but boosted up by 3%. And after a quarter, it was found that the overall expense for initiating the wellness program was far less the corporate loss due to low employee efficiency. Elite health corporate wellness program was a boon to the company. As also , our wellness program consisted of eConsultation, which allows us to be in contact 24/7 with the experts to discuss regarding the health issues.
And not only our company, many others were profited by such corporate or workplace wellness program.
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