EMPLOYOR SPONSORED INSURANCE AND ITS EFFECT ON EMPLOYEE HEALTH

I outlined Michael Grossman's human capital model theory mainly. The human capital model is an attempt by Grossman who is trying to explain the health needs, and he relies heavily on human capital theory at that time. This is because health is an important part of human capital as well as experience and education. He believes that while other factors of human capital influence productivity at one point, healthy capital will affect the time of individual production.

Employer sponsored health insurance will be paid by the company on behalf of the employee as part of the employee benefit package. Most of the US private (non-government) health insurance is based on employment. Nearly all large employers in the United States provide group health insurance for employees. A typical large employer's PPO program is usually more generous than the standard option of the Medicare or federal employee health benefit program. Employers usually make a significant contribution to insurance costs. Usually, the employer will pay about 85% of the premium to the employees, about 75% of the employee's family. The rest of the employee's premium payment is usually pre-tax / tax-free income. These ratios have been stable since 1999

Private health insurance can be purchased group by group (eg by company covering employees) or by individual consumer. Most Americans who are subscribed to private health insurance are acquired through an employer-sponsored program. According to the US Census Bureau, approximately 60% of Americans join insurance through their employers and approximately 9% have direct health insurance. Hospitalization costs for private insurance in 2011 were 12.2 million, accounting for 29% of the total hospitalization costs in the US ($ 112.5 billion).

In the United States, the main purchaser of health insurance is the employer, that is, the employer purchases employee's health insurance as the best interest of employment. This is called health system organized by employer. Most people familiar with health policy also call it "a very stupid way to do health insurance." As this is what they know, this is also the fact that most Americans think of what is common. However, if you stop and stop thinking for a while, the main flaws in how to purchase health insurance will be revealed.