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Long-term implications for the U.S. Economy of Employer Health Coverage

Does employer health coverage have a long term effect on the US Economy?

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Long-term implications for the U.S. Economy of Employer Health Coverage

Everyone agrees that though access to employer coverage has increased (Long & Stockley, 2009, n.p.), but everyone also agrees that the coverage in terms of dollar amount has been dropping and that the benefits under employer sponsored health coverage is being scaled back. This decline has alarmed labor unions, which in turned is pressuring legislators to do something to arrest this decline.

One of the few states that has answered the call is Massachusetts, which is one of the few states with "near-universal insurance coverage" (Massachusetts Division of Health Care Finance and Policy, 2009, n.p.), and requires employers within the state to: "set up a Section 125 plan (or "cafeteria" plan) for their workers, so that employees can pay for health insurance premiums with pretax dollars" (Commonwealth of Massachusetts, 2006, n.p.) and for "[Employers] with more than ten employees also must make a "fair and reasonable" contribution toward their workers' health insurance or face an assessment not to exceed $295 per full-time-equivalent (FTE) worker per year" (Commonwealth of Massachusetts, 2006, n.p.). These requirements have helped Massachusetts to defy the national decline in the scope of benefits or quality of care under employer provided health insurance.

Other states and the federal government has responded differently from Massachusetts' response. Public provided health ...

Solution Summary

A guide for "Long-term implications for the U.S. Economy of Employer Health Coverage" is provided. The long term effects on the United States economy is discussed.