Increasing Benefits Cost is Just a Band-Aid

March 26, 2007 · Filed Under Adventures in (Mis)Management 

Last week, I wrote about employers passing on benefits cost to at-risk employees (specifically smokers but could be broadened). I received a lot of great comments from both this blog and recruitingbloggers.com. Examples include:

Ann says: Lung cancer for a smoker ok — will be blame the lung cancer from second hand smoke for an employee who used to work in a bar, or who is married to a smoker? The path gets quite slippery.

Lori says: I do not smoke, but my husband does. How would that work in regards to my employer knowing about my husband and charging me more? I certainly will not volunteer the information if not asked outright.

Jacqueline says: The way we determine auto insurance is based on risk, so why not apply that to health insurance? People who choose to drive fast sports cars are charged more than other drivers.

Maureen says: Health care’s rising costs are the #1 danger to our country’s solvency. It is endangering jobs and the welfare of our country’s citizens.

Colin says: Well, the problem here has long been that employers should not be in the health insurance business. The fact that we’re even having this discussion (put that cruller down, Mr. Smith) is entirely the result of a policy that dates back to Franklin Roosevelt.

Why I don’t necessarily disagree with employers trying to cut costs using these methods, the slippery slope has to be acknowledge and the temporary nature of any sort of change along these lines has to be considered. This does very little to control the long term costs of medical care as I don’t see an outright ban of smokers at all workplaces and while that population continues to decrease, the cost to treat continues to increase.

We are one of the few western societies in which health insurance is connected to employment and that has obviously created the problem we have today. Many take care of this through single-payer (government inspired) insurance. There is already enough debate about whether or not that is viable for this country but if companies want to reduce medical costs, I don’t see it happening under the current model no matter what attempts at social engineering companies may try.

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