Employee contributions through payroll deductions, especially for employees with dependents can add up to many hundreds of dollars per month and thousands of dollars per year. Add in additional out of pocket expenses for deductibles, copays, and exorbitantly priced, slickly marketed prescription drugs and what you have in effect is a growing percentage of employee compensation (and employer gross income) being allocated to health insurance expenses.
A survey released Tuesday, August 28 of 1,223 employed U.S. adults by Harris Interactive and sponsored by human resources software firm Kronos, found exceptional health care coverage to be the most desired benefit currently not offered by employers. Among benefits employees currently do not have, 100 percent coverage of health care costs by the employer is considered a more desirable benefit to employees than competitive salary.
The other dark side to the health care crisis in this country is that more and more employers simply cannot afford to provide coverage to their employees. The Census Bureau reported Tuesday, August 28, that the percentage of people covered by employer-based health insurance decreased to 59.7 percent in 2006, from 60.2 percent in 2005, a factor contributing to the rise in the number of uninsured throughout the population. The percentage and number of uninsured Americans rose in 2006 to 15.8 percent, or 47 million, up from 15.3 percent, or 44.8 million, in 2005. Similarly, the percentage of children under 18 without health insurance increased to 11.7 percent, from 8.7 percent in 2005. The percentage of Americans covered by government health insurance programs dropped to 27 percent, from 27.3 in 2005. The high cost of health insurance has for years been a top concern for American businesses.