How Could Single Payer Healthcare Benefit Workers and Business Owners?
The Toll of Healthcare on Everyone
The U.S. healthcare system imposes a significant toll on people in Oregon and impacts their physical well-being and financial stability. High medical costs often force residents to choose between essential care and other necessities and lead to delays in treatment and worsening health outcomes. Many Oregonians forgo preventative care due to prohibitive costs, which results in increased emergency room visits and chronic conditions that could have been managed with timely intervention.
The complexity of insurance plans adds additional stress for everyone. Navigating deductibles, copayments, and coverage limitations that are typically tied to employment can be overwhelming, particularly for vulnerable populations. This confusion often leads to unexpected bills that exacerbate financial strain, which pushes families deeper into debt or forces them to cut back on food or housing expenses.
The current system contributes to significant health disparities, particularly among marginalized communities. Racial and economic inequalities are worsened by limited access to quality care which leaves many Oregonians without the support they need.
Why is Healthcare Tied to Employment in the US?
Unlike other countries, healthcare insurance coverage in the United States is linked to employment. This connection primarily stems from World War II when wage controls led companies to offer health benefits to attract and retain workers*. Consequently, employer-sponsored insurance became a component of compensation packages and established a norm that persists today. As health insurance costs have risen 20-fold in the last 80 years, healthcare benefits have become a significant aspect of an employment package.
One of the driving forces behind the maintenance of this link is the tax advantage provided to employer-sponsored plans. Employees receive their healthcare coverage, when it comes tax-free from an employer**. For an employee to buy healthcare coverage outside of an employee-employer relationship, they would have to pay additional costs that are not associated with employer-based coverage. For the employer, this is another cost of doing business in the United States.
The U.S. healthcare system is characterized by a patchwork of public and private insurance options. While programs like Medicare and Medicaid provide coverage for specific populations, the majority of working-age individuals rely on employer-sponsored insurance. This reliance creates a situation where losing a job can lead to a loss of health coverage which exacerbates the financial risks associated with unemployment.
This expectation imposes significant financial burdens on businesses, particularly small and medium-sized enterprises. These expenses can divert resources away from investment in innovation and workforce development which reduces overall competitiveness.
Additionally, the unpredictability of healthcare costs can hinder long-term planning, which makes it challenging for U.S. companies to compete effectively with foreign firms that operate under different healthcare models.
The linkage of healthcare and employment also has broader implications for healthcare access and equity. Individuals in part-time or lower-wage jobs often lack access to employer-sponsored insurance, which leaves them vulnerable to high medical costs. This discrepancy can perpetuate health disparities, as those with less stable employment may struggle to obtain adequate care.
Benefits of Getting Businesses out of Healthcare
One of the advantages of single payer health insurance is the systematic reduction in administrative costs. Under the current multi-payer system, businesses often face complex insurance billing, compliance issues, and varying regulations. A single-payer model simplifies these processes by providing a unified system for healthcare financing, which allows businesses to allocate resources more effectively and focus on core operations rather than navigating intricate healthcare logistics.
Moreover, single-payer healthcare can lead to substantial cost savings for employers. With the government acting as the primary insurer, businesses would no longer be responsible for providing health insurance benefits to employees. This could free up capital that companies can reinvest in growth initiatives, such as research and development or employee training programs, and enhance their competitive edge in the market. Additionally, a healthier workforce results in increased productivity. With comprehensive access to preventive care and treatment, employees are less likely to experience prolonged illnesses, reducing absenteeism and boosting overall workplace morale.
Another benefit is the level playing field it creates for businesses of all sizes. Small and medium-sized enterprises often struggle to compete with larger corporations, like Google or Amazon, that can negotiate better insurance rates. A single-payer system would eliminate disparities in healthcare costs and allow all businesses to operate under the same conditions and foster a more competitive environment.
By tying deductibles and copayments to a publicly available option, we can reduce the administrative strain and guarantee coverage. Uncoupling healthcare from employment will not solve all of the healthcare issues in our country, but it is an important step in creating a more efficient and effective system. It will be just as important to create a fair financial system of single payer as we try to change existing healthcare infrastructure.
Oregon has the opportunity to lead the way in healthcare reform by adopting a single-payer system that ensures everyone has access to quality care. Contact your legislators, attend community meetings, and share your vote by November 5th to advocate for a healthier Oregon.
*The Real Reason the U.S. Has Employer-Sponsored Health Insurance - The New York Times (nytimes.com)
**Is Health Insurance Tax Deductible for Small Businesses? | eHealth (ehealthinsurance.com)