Incredibly Shrinking Healthcare

Fewer companies are providing their employees with health insurance coverage. Those companies still offering health benefits are requiring workers to pay higher co pays, and to pay more out of pocket on increasing monthly premiums.

A survey conducted by Kaiser Family Foundation found that the percentage of all employers offering health insurance peaked in the year 2000, but has fallen each year since. The survey states that the numbers of Americans holding down regular jobs rose from 3.4 million in 2001 to about 19 million in 2005. The healthcare crisis does not just effect the homeless or people falling below the poverty line, but is also a large problem for the average middle class.

The problem has been amplified by several economic factors, one of which is the huge loss of manufacturing jobs to off shoring. The work force, now forced to take lesser paying service jobs without adequate healthcare insurance benefits find it nearly impossible to afford to purchase individual insurance policies due to wage stagnation and rising costs of healthcare.

As healthcare premiums continue to rise more and more companies are forced to make employees accept less than adequate healthcare benefits, or pay a higher share of the premiums for their benefits. Healthcare costs are currently rising at nearly double the average for all consumer prices.

Workers protected under union contracts have a distinct advantage to those who are not. The reason for this is that these benefits must be negotiated as part of the collective bargaining agreement protected by the union. Union workers have the collective ability to push back and stand against corporate proposals that would effect the rates they pay for their benefits. Workers not covered by collective bargaining agreements do not have this advantage.

Not being able to afford reliable and adequate health insurance is a big concern for all Americans, even those with well paying reliable jobs. Several legislative proposals have been introduced to head off this problem before it causes a real economic collapse by separating the employment from healthcare coverage.

Universal Healthcare plans would extend Medicare benefits to all citizens. This Universal healthcare plan which is supported by Michigan Democrat John Conyers is but one proposal that has been put forward. Republicans are leaning more towards a free market approach to Universal Healthcare, stating that government controlled HMO’s would be socialistic.

The free market approach supported by Republican leaders would include dropping the federal tax benefits to employers that provide healthcare coverage to their employees, and provide private tax incentives to individuals to offset the cost of healthcare costs. Large insurance companies also support these types of plans, because they would virtually eliminate the bargaining powers large groups have with healthcare carriers to negotiate more affordable premiums.

Presidential hopeful Barack Obama favors a plan that would require employers to share costs of insuring workers, coverage for all children, and offers benefits equal to those provided to federal employees. Rudy Giuliani has come out in support of a healthcare reform package that includes a $7,500 income tax deduction to help individuals offset the costs of purchasing healthcare insurance, with a tax credit for poorer workers to supplement Medicaid and employee contributions. He also wants to expand the use of private healthcare savings accounts.

Hillary Clinton favors a more aggressive plan that would require individuals to have coverage, providing tax credits to individuals. She favors a plan that offers a choice between public (HMO type) and private (Choice) plans. She wants to push for employers to cover workers or to choose to pay into a public healthcare fund.

Recent polls show that two thirds of all Americans support Universal government financed healthcare reform. It takes a two thirds majority in congress to overturn a veto from the president.