Employer based insurance is , when an employer pays the cost of
a health insurance plan for his employees ( including spouse and
dependents) .
Consequences of
employer based
insurance:
For emloyers:
- Potential cost increases from year to year - premiums typically
increase every year based on the previous years health care costs
of the group.
- Additional expense for providing coverage.
- Possible in house administrative costs.
For employees:
- Ineligible for subsides if coverage meets requirements - after
getting health insurance from employers most people never think too
much about it until they or family member develops a serious health
problem. That when they first learn the details of their health
insurance benefits ie which medical providers they can use and what
their out of pocket expenses will be.