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Employer-provided health insurance

As health care costs continue to rise, the likelihood of that happening also rises. The cost of offering these benefits has doubled during the last seven years and has already caused fewer businesses to offer them. During 2000 and 2007, the costs of health care in general skyrocketed in comparison to the Consumer Price Index. While that number increased by 17%, premiums for individual health care provided through employers went up 86% and co-payments for brand name prescriptions went up 124%.

Besides the vulnerability of the system, EBRI also pointed out that a lack of portability is a major drawback. Employees can not carry their health insurance from one job to another, plus the costs of COBRA coverage during transitional periods can be higher than what would be affordable for many people.

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