As an Insured Employee, Why Should I Care About a Public Option?

As an Insured Employee, Why Should I Care About a Public Option?

[This article is an excerpt from the COSA November 2009 State of the Union newsletter. For the entire newsletter, click here]

The fact is, there is little competition among those who provide health insurance plans, as only a small number of companies have an overwhelming number of participants in their plans. It is that lack of competition that is creating increases in health care costs at 3-4 times the rate of inflation, and the creation of another competitor-the public option-will hold down cost increases in the future.

Cost must be contained to the rate of inflation, or ultimately it will drive more and more families into the ranks of the uninsured who then end up requiring the most expensive care available-an emergency room. We know who pays for that kind of health care: We all as taxpayers do!

If insurance costs continue to rise at this rate, families will become uninsured either because the employer can no longer afford to offer health care to their employees, or the employer will be forced to pass insurance premium increases onto their employees, which the individual employee won't be able to pay.

Increases in the cost of health care are out of control and soaking up funds that otherwise would be available for other kinds of employee compensation-like cost of living increases, market wage adjustments, or even additional health benefits or out of pocket reductions.

If we do not resolve the lack of competition, which is driving up costs, then more and more families will do with less and less in all areas of employee compensation.