We’ve released our book The End of Employer-Provided Health Insurance, which discusses the obvious solution to our nation’s employer health insurance woes - employer-funded individual health insurance. The book is available via all major retailers including Amazon.com and BarnesandNoble.com.
This article is part of an on-going series of articles on The 10 Reasons Group Health Insurance is Bad for You, Your Family, and Your Company.
The eighth and ninth reasons group health insurance is bad for you, your family, and your company is because it is bad for careers (your cost could double to due to one employee with a million-dollar claim) and it is bad for business (management spends time on health insurance that should be spent on customers and products).
Group Health Insurance is Bad for Careers
Millions of Americans today are modern-day slaves either unable to retire early, working in jobs they don’t really want, or working in jobs that don’t actualize their full potential—all because they need their group health insurance to take care of themselves, a spouse, or a child with a chronic medical condition.
Patients with chronic medical conditions like depression, cancer, or diabetes typically require care by the same medical provider over a long period of time, and changing doctors can be very detrimental to their care as well as to their wallet.
While the Affordable Care Act (ACA) has made affordable individual health insurance accessible to millions of Americans, when employees switch from group coverage to an individual policy, it is unlikely that their new health insurance company has a network that covers all of their existing providers.
Even if an employee finds an individual health insurance company network that covers their existing medical providers or equivalent substitutes, it will typically be very expensive to switch their insurance company and network of providers as previously described.
Group Health Insurance is Bad for Business - Management Spends Time on Health Insurance That Should Be Spent on Customers and Products
In our specialized economy today, success in business requires that managers and owners focus on better ways to serve their customers. This ranges from continually improving your products and services to finding better ways for your customers to obtain and pay for your products and services. No stone can be left unturned when it comes to improving the customer experience.
Group health insurance is another hour you are not spending managing and improving your product or service. Even if your company is large enough to justify having dedicated full-time managers of your group health insurance plan, with health insurance costs today exceeding profits for many companies, it’s rare that the CEO and CFO of a Fortune 500 company do not spend many hours managing their health benefits program.
Although they don’t know it, many employers are not competent at managing their group health insurance benefits. Just as you see some of your customers are relatively uneducated about how to properly buy and save money on your product or service, you and your managers are similarly uneducated when it comes to knowing how much group health insurance coverage to purchase and how to pay for it. This is because there is virtually no transparency for employers when it comes to managing their employer health benefits program. Everything is disguised—from how much their health insurance broker makes in commissions and overrides on the different policies they recommend, to the performance and efficiency of each medical provider in the plans’ networks.
What’s the Solution?
You should switch to individual health insurance because it's good for careers and business. With an individual plan, people are free to change jobs based on what’s best for their career vs. what’s best for their healthcare, and management is able to spend more time focusing on customers and products.
I will be going through reason number ten (group health insurance is bad for America) tomorrow.