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Take a moment to review the areas of debate that you hear so much about.
The Rising Costs of Healthcare
Both employers and employees are seeing the costs of healthcare premiums rising. There are many reasons that have been attributed to this including: the government (Medicare, Medicaid) paying less for services, rising numbers of uninsured utilizing emergency room services, improvements in technology/medications, individuals living longer, and a cultural quest for the “best” in healthcare.
Increasing Numbers of Uninsured
There are millions of individuals that do not carry insurance. Some are unemployed and can not afford it. Some are illegal aliens. And, others simply choose not to have health insurance-- they choose to have more money in their pockets at pay periods. When these individuals are sick or seriously injured, they go to the emergency room, and are, under law, treated even if they can not pay for services. Healthcare providers must compensate for the great loss in this area in other ways.
Cost-Shifting to Employees
Because of the rising costs of health care, many employers are moving to a benefit model where the employee must pay more of the healthcare cost. In some circumstances, employees may have to pay a larger percentage of premiums for their own care and/or sometimes all of the premium for the care of their family.
Portability
Since insurance is employer-based, workers must make a change to his or her insurance company and plan when job changes are made; health insurance is not “portable” from one employer to another. Each year fewer employers offer health insurance as a benefit. Therefore, many employees feel indentured to their employers; they can't change jobs, because they can't afford to lose their health insurance.
Malpractice
Physicians must carry malpractice insurance, to protect them against liability. It is expensive, but necessary to be in practice as both negligence and error does occur when “life” is at stake. Physicians and insurance companies blame “frivolous” lawsuits for the costs, attorneys disagree often with support of the legal system. Some groups blame the threat of “malpractice” as what drives unnecessary patient testing and procedures, others say it is what keeps providers in check.
The “Costs of Prevention”
Sure, we are preventing disease and living longer…and it comes at a great cost. Medicine, technology, practice is improving and our average lifespan is increasing. These great improvements have only aided in the overall healthcare costs our nation experiences.
Coverage Denial Based upon Pre-Existing Conditions
Insurance companies gain a basic health profile on clients, and many times those with serious, long-term illnesses are denied insurance benefits. While insurance providers have the right to deny coverage, it leaves those who really need care with no means to get that care.
Government Regulation
Healthcare is one of the most heavily regulated industries in our country. While regulations such as HIPPA were created and implemented to protect citizens, they are costly regulations to incorporate, implement, and monitor.
Return to Resource Center > Understanding Health Care Challenges
No matter how you slice it, ECHI is a smart business decision. Call the McLean County Chamber of Commerce today at (309) 829-6344. Simply say: Tell me about ECHI today!
Employers’ Coalition for Healthcare, Inc.
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