Tuesday, March 1, 2011

Why do we get our health insurance through our jobs?

I'll tell you. In the 1940s Truman continued wage and price controls well beyond WWII - - not that they worked anyway, as anyone familiar with J.B. Say knows. It was illegal for most employers to give many of their employees a raise!!!!!!! So guess what those employers did? They figured out a way to get AROUND that restriction, and compensate their employees MORE, in order to KEEP them. How? "Fringe benefits" that included health insurance, dental insurance, etc.... Because a group of employees usually is a good pool - people at least functional enough to have jobs - and because it offered the chance to sell policies to hundreds or thousands of people at once - the insurance companies considered this a great idea.
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Many many workers do not work for businesses that offer health insurance. And many that do, the employer only pays 20 % or so of the monthly premium (like my comany), Many companies buy the absolute CHEAPEST coverage they can get away with to increase their own profits, and all too many workers who feel comfortable that they have health insurance, come to find out when they or their loved ones do get sick, find out all too late that the insurace refuses to pay for that particular illness/procedure. It's in a shambles.
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