Many companies provide a one-size-fits-all approach to health care, allowing full-time employees to opt in to the employer-sponsored coverage. These plans generally cover all “medically necessary” care, which includes expensive procedures and services that might never be used.
Although providing all inclusive coverage may appear to be an easy solution to offering health coverage for your company, it is important to recognize that this approach might not be as effective as you think.
To start, not all employees are the same and the one-size-fits-all approach does not work for everyone. Nicholas Bagley and Austin Frant comment on the topic in an article written for The New York Times, stating:
“This one-size-fits-all approach to insurance coverage disproportionately hurts low-income people, many of whom might reasonably prefer to devote their scarce dollars to housing or their children’s education.”
Additionally, companies throughout the healthcare industry are rewarded for making procedures more expensive rather than more effective and cost friendly. By offering this all-inclusive care, you and your employees end up paying for care and coverage that isn’t used. Resulting in these companies profiting from their price increases.
Why pay for something that is more expensive when there is a similar solution that costs less? Take a look at all of the options available to ensure that you only pay for what your employees want and need.
Read the article, The Problem With One-Size-Fits-All Health Insurance, from The New York Times for more information.