Health Insurance Coverage Cuts to Come?
This week The Wall Street Journal reports that since the start of the recession, “thousands of employers have cut pay, increased workers’ share of health-care costs or reduced the employer contribution to retirement plans.” While many workers may have believed this to be a temporary move, consulting firm Watson Wyatt found that two-thirds of big companies that cut health-care benefits don’t plan to restore them to pre-recession levels, according to the paper.
Consider this staggering stat from The Journal, which sheds some light on the cost concerns: Employers that offer health insurance to workers will spend an average of $6,700 per employee on it this year, nearly twice as much as in 2001, according to consulting firm Hewitt Associates.
If your current employer stopped contributing to all or part of your health insurance premium, could you afford to cover it on your current budget? How would you adapt?