I serve on the Benefits Advisory Committee for our school. We meet weekly to discuss many of the aspects of our benefits plan, and I would say that 80-85% of our time is spent on health care and its related issues: switching providers, amending the dental plan, looking for cost savings. Our benefit administrator spends significant amounts of time dealing as well with employee interaction with that plan.
So, it was interesting to read the news that the flawed McKinsey study that argues 30% of employers wil drop health insurance by 2014 ( for some discussion of the problems with the McKinsey study, click here and here). It got me to thinking, why are employers in the health care business? Given how much time, energy, and resources our HR Department spends, is the competitive advantage of providing it to attract applicants worth the effort?
Further, why are employers opposed to a single payer or Medicare-for-all system? Wouldn't HR be freed up to handle more employee performance and strategic issues instead of spending all the time dealing with insurance companies? Wouldn't employees be more productive instead of fretting over filling out yet another flexible spending account reimbursement form?
I understand the cost implications of it, but what would be the disadvantage(s) purely from the standpoint of operating your business?