The history of why we get our benefits from employers
dates back to WWII, when companies began using healthcare as a means to attract talent, particularly women
. To combat inflation, the 1942 Stabilization Act was passed to limit an employer's ability to raise wages to attract workers when the labor pool was scarce.
How did the rise of employer provided health insurance come about?
In response,
the War Labor Board exempted employer-paid health benefits from wage controls and income tax
. This historical accident created a tax advantage that drove enormous demand for employer-provided health insurance plans over the previously more-common individual health insurance.
Third, in 1954
the Internal Revenue Service decreed that health insurance premiums paid by employers were exempt from income taxation
.
What is the relationship between employment and health insurance?
Employment and health are
inextricably linked
. Employment and income have a direct impact on life expectancy, quality of life, and health care costs. Relatedly, medical health has a direct impact on employability. Acute and chronic illness can prevent work entirely, cause job loss, and prevent wage gain.
Why is US health insurance employer based?
Designed to limit employers' freedom to raise wages and thus to compete on the basis of pay for scarce workers
, the actual result of the act was that employers began to offer health benefits as incentives instead. Suddenly, employers were in the health insurance business.
Why does the US have employer sponsored health insurance?
The history of why we get our benefits from employers dates back to WWII, when companies began using healthcare as a means to attract talent, particularly women.
To combat inflation
, the 1942 Stabilization Act was passed to limit an employer's ability to raise wages to attract workers when the labor pool was scarce.
What are some disadvantages of employer sponsored health insurance?
The disadvantages include
an unfair tax treatment, lack of portability and job lock, little choice of health plans, and lack of universal coverage
.
What happened during World War II that helped promote employer-based health insurance in the United States?
Wage freezes
during WWII helped promote employer-based health insurance in the US. True. Corporatization of medicine has resulted in delivering the same quality of health care at a lesser cost.
Why does employer purchased health insurance result in more comprehensive coverage?
6. Why does employer-purchased health insurance result in more comprehensive health insurance coverage?
Employer purchased health insurance is not taxed
so high earners may wish to put additional dollars into more comprehensive health insurance they reciev the money, pay taxes, and be pushed into a higher tax bracket.
What was the main reason for initiating national healthcare in countries such as Germany and England?
What was the main reason for initiating national health care in countries such as Germany and England?
Ward off political instability
. Physicians and hospitals in the US began consolidating and integrating mainly in response to: The growth of managed care.
What was created to provide health insurance for the elderly and the poor in the 1960's?
On July 30, 1965, President Lyndon B. Johnson signed the
Medicare and Medicaid Act
, also known as the Social Security Amendments of 1965, into law. It established Medicare, a health insurance program for the elderly, and Medicaid, a health insurance program for people with limited income.
Who was the first American president to make an appeal for national health insurance?
Harry Truman
, who became President upon FDR's death in 1945, considered it his duty to perpetuate Roosevelt's legacy. In 1945, he became the first president to propose national health insurance legislation.
How does occupation affect health?
Occupation factors
may give rise to a very wide range of injuries and diseases
. Occupational injuries may be classified according to the type of injury, the affected body part, and the type of enterprise where the injury was sustained.
How does occupation affect health and wellbeing?
Lack of meaningful occupation or occupational role overload may have a negative effect on health and wellbeing
[3]. Role overload occurs when individuals are subject to too many role demands and have too little time to meet them, which hinders their ability to address all the demands [8], resulting in frustration [9].
How does employment affect health?
The Link Between Employment and Health
A good-paying job makes it easier for workers to live in healthier neighborhoods, provide quality education for their children, secure child care services, and buy more nutritious food
—all of which affect health. Good jobs also tend to provide good benefits.
Who invented health insurance?
The true precursor to modern health insurance began in Texas in 1929.
Justin Kimball
created Blue Cross to allow teachers in Dallas to pay a hospital 50 cents a month and not be charged when, later, they went to that hospital to have children.
Why health insurance is so expensive?
The price of medical care is the single biggest factor behind U.S. healthcare costs
, accounting for 90% of spending. These expenditures reflect the cost of caring for those with chronic or long-term medical conditions, an aging population and the increased cost of new medicines, procedures and technologies.
What are the advantages of employer provided health insurance?
Advantages of an employer plan:
Your employer often splits the cost of premiums with you
. Your employer does all of the work choosing the plan options. Premium contributions from your employer are not subject to federal taxes, and your contributions can be made pre-tax, which lowers your taxable income.
Are employers required to provide health insurance?
From a legal standpoint,
there is no federal law that says companies must offer health insurance to their employees
. However, employers' health insurance requirements do apply for some businesses depending on their size.
How was health care insurance established in the United States?
The precursor to our modern health insurance system began in the 1920s when
hospitals began to offer services on a pre-paid basis
. What is widely considered the first employer-sponsored plan started with a group of teachers in Dallas.
Why do employers offer wellness programs to their employees?
Preventive health and wellness benefits are designed
to help maintain or improve employees' behavior to achieve better health and to reduce health risks
. By warding off health problems or lowering their incidence among employees, organizations hope to save on long-term health costs.
Why would an employee refuse an employer provided plan?
There are a few main reasons your employees may reject the health coverage you're offering:
They're already under a family member's plan
. They're receiving insurance from another employer. They prefer an individual health plan because it offers better benefits or is more affordable.
What impact does employer health benefits have on employment mobility?
The evidence of this increased job mobility is fairly consistent. Several studies find that
employees who have a spouse with health insurance are more likely to move jobs than those who depend on their own employment for health insurance
.
What is a vesting period?
A vesting period is
the time an employee must work for an employer in order to own outright employee stock options, shares of company stock or employer contributions to a tax-advantaged retirement plan
.
Why was health insurance developed quizlet?
Why was health insurance developed?
to provide protection should a covered individual experience an event that requires health care like injury or sickness
.
How does healthcare insurance work?
Health insurance works very much like any other type of insurance.
You pay a monthly or annual premium and the insurance company agrees to pay some or all your private medical costs in line with the benefits, terms and conditions of your health insurance policy
.
When did employee benefits become more popular?
In 1959, Congress finally created a program of health benefits for federal employees. Prevalence of employer health plans skyrocketed from 9% in 1940 to 70% of all employers
by the 1960's
.
