http://www.latimes.com/health/la-fi-employer-insurance-20110928,0,3632149.story
September 29, 2011
Dear Editor,
You reported that we have seen the largest insurance premium increases in 2010 over the past six years. While employers shouldered most of this cost increase, future increases may be transferred to employees. This is important because real wages have failed to increase at a rate similar to health cost increases.
The Obama health care bill requires all US citizens to purchase health coverage by 2014 if they can afford it. While this act is a step toward reducing the uninsured, it creates more demand for insurance, possibly driving up premiums. As a student, my perspective is that rising premiums cause people to reevaluate where they spend their money, and may force some to give up insurance to pay for other necessities, like housing. The proposed bill AB 52 would allow California regulators to examine insurers' cost projections and reject excessive increases. I believe this bill would help limit premium increases that put an undue burden on the consumer.
Sincerely,
Madison Duncan
madison.d@berkeley.edu
You make an excellent point in that workers may have to make many sacrifices as a result of rising insurance premiums. Unfortunately, workers are not the only victims and the circumstances are just as difficult for the employers. Employers not only face financial challenges in bearing the majority of insurance costs; they are also troubled by their obligations to care for their employees. Employers are caught in a tough predicament because they want healthy and productive employees but they do not have unlimited funds to offer affordable health care options.
ReplyDeleteI urge legislators to take action not only in regulating insurers' costs but also in establishing incentives for employers who make an effort to prioritize employee health benefits and treat employees well. It is apparent that in a health system plagued by complexities and trickle-down effects, more than one approach is necessary to address the concerns at hand.