General Discussion

theaocp

(4,570 posts) Fri Jun 29, 2012, 11:33 AM Jun 2012

Why do employers continue to pay for health insurance? [View all]

It's an interesting question, since it seems like a massive expenditure that appear to have no matching upsides for the employer. Thoughts?

53 replies

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Why do employers continue to pay for health insurance? [View all] theaocp Jun 2012 OP

It has an upside for employers Matt_in_STL Jun 2012 #1

Tons of businesses run without offering health insurance. Sick employees get fired and replaced. Zalatix Jun 2012 #10

I definitely agree with your point Matt_in_STL Jun 2012 #20

Yes, that much is quite true. Zalatix Jun 2012 #23

not so much in skilled industries. for unskilled labor it is more common. dionysus Jun 2012 #47

Yeah, this is going to sting unskilled labor, big time. Zalatix Jun 2012 #48

It's cheaper to get a group plan than to pay enough for employees to buy their own. HopeHoops Jun 2012 #2

I don't think that's necessarily true. Most employers pay a percentage of the premium riderinthestorm Jun 2012 #7

Yup, your calcs are correct. Zalatix Jun 2012 #13

wow, do you teach Ethics classes? Ghost of Huey Long Jun 2012 #21

Other businesses won't listen. Sociopathy is the core of capitalism. Zalatix Jun 2012 #22

And THAT is how we will FINALLY get to universal coverage SoCalDem Jun 2012 #26

This is one of the things I have been saying. ACA has flaws which will become glaringly obvious kestrel91316 Jun 2012 #29

Yes, agreed. This is the inherent flaw in "every man for himself". closeupready Jun 2012 #32

Yep, I've been saying this for 2 years now. And I agree 100% that change will come when riderinthestorm Jun 2012 #38

Why did you not drop it before? ieoeja Jun 2012 #34

My husband is only 4 years out from his last round of Stage IV, Grade IV lymphoma. riderinthestorm Jun 2012 #37

You just made a DAMN good argument in favor of single-payer!!! HopeHoops Jun 2012 #44

most qualified employees won't answer an ad that doesn't include healthcare. stlsaxman Jun 2012 #3

Really? In this job market? You think anyone can afford to be that selective? riderinthestorm Jun 2012 #11

And due to the tax/mandatory purchase, they won't be covering their loans now. Zalatix Jun 2012 #14

It was all part of a strategy to attract and keep competent talent KansDem Jun 2012 #27

The only work available in my area seems to be P/T, under $15/hr, no benefits. kestrel91316 Jun 2012 #30

Tax loophole. Nye Bevan Jun 2012 #4

and that counts as expenses for the business so the employer pays less in taxes as well Ghost of Huey Long Jun 2012 #24

Exactly. n/t PoliticAverse Jun 2012 #42

It's a ball and chain they attach B Calm Jun 2012 #5

Definitely true. Laelth Jun 2012 #8

Well Nye Bevan Jun 2012 #49

i wouldn't have health insurance if it weren't for my job fizzgig Jun 2012 #6

savings and efficiency loyalsister Jun 2012 #52

The ACA is a move in the direction to de-couple employment and health care delivery. Ikonoklast Jun 2012 #9

I believe that as well. Employers are going to be dropping coverage. I'm sure of it riderinthestorm Jun 2012 #15

Believe it or not, the auto manufacturers are HUGE supporters of Single Payer. Ikonoklast Jun 2012 #19

Yup, I've read that as well. riderinthestorm Jun 2012 #25

It seems to me that the ACA actually reinforces employer-based health insurance. BlueCheese Jun 2012 #45

Personally, I believe the provision that mandates insurers take every applicant is the key riderinthestorm Jun 2012 #46

Wouldn't the insurance exchanges offer a person the ability to move to a job that..... soccer1 Jun 2012 #51

Access to healthcare shouldn't be tied to a job Lex Jun 2012 #12

+1000000000. nt riderinthestorm Jun 2012 #16

Heavily subsidized tax breaks from the government to corporations for health coverage. yardwork Jun 2012 #17

It started as an incentive to employees....then turned into something they felt they *had* to offer cbdo2007 Jun 2012 #18

Employers aren't really paying anyway. Live and Learn Jun 2012 #28

I know. I don't get that either. closeupready Jun 2012 #31

Because it's a competitive benefit. Gormy Cuss Jun 2012 #33

You Need Quality Employees To Keep A Business Running Yavin4 Jun 2012 #35

If you are unemployed and qualified to be a benefits consultant, you should get a job right now FarCenter Jun 2012 #36

It doesn't seem to make much sense. Quantess Jun 2012 #39

Big companies do it because they actually OWN the insurance "company" or are self-insured. CBGLuthier Jun 2012 #40

Because some business owners still believe in Doing the Right Thing lapislzi Jun 2012 #41

I can definitely see the possibility of a gradual reduction in employer-sponsored health insurance.. Swede Atlanta Jun 2012 #43

Alot of them no longer do Marrah_G Jun 2012 #50

In theory, an employer who pays X for salary and Y for insurance premiums lumberjack_jeff Jun 2012 #53