How would a Single Payer Healthcare System change how employers compensated employees?

[MrEgo]

I haven't posted here in quite some time, so I apologize if this has already been discussed in detail. I did a quick search on here and did not see a discussion that pertained to my question.

Anyway, my employer currently pays $19,968 per year for healthcare for my family. It's pretty good coverage. I have a $1,000 deductible for my family, and virtually all doctors and clinics accept my insurance.

So my question is - if employers were no longer on the hook for that $19,968, how would you expect employee compensations to change? I would expect salaries AND federal taxes would increase, but I'm curious to know if anyone is willing to speak to what the likely scenarios would be. I know that's a loaded question, and I'm sure there isn't a single answer.

 

[glenn1]

I haven't posted here in quite some time, so I apologize if this has already been discussed in detail. I did a quick search on here and did not see a discussion that pertained to my question.

Anyway, my employer currently pays $19,968 per year for healthcare for my family. It's pretty good coverage. I have a $1,000 deductible for my family, and virtually all doctors and clinics accept my insurance.

So my question is - if employers were no longer on the hook for that $19,968, how would you expect employee compensations to change? I would expect salaries AND federal taxes would increase, but I'm curious to know if anyone is willing to speak to what the likely scenarios would be. I know that's a loaded question, and I'm sure there isn't a single answer.

Compensation wouldn’t change unless law mandated health insurance benefits no longer paid must be paid in salary. IOW not happening as even Dems wouldn’t do that.

 

[LurchFrinky]

My guess is that most of that money would need to be paid to the government in the form of some new health care tax in order to offset the greater expenditures. You would end up with less desirable health care (whether just a little or a lot is up for debate), but your employer may not have as much money as you think to increase your compensation.
Now, some employers use their health insurance offerings as a differentiator to their competition when hiring competitive candidates. With the health insurance being equalized, some companies may need to increase compensation to keep from losing their best employees.
It is also possible that some companies are currently in particularly high or low rate insurance markets and may have anywhere from a lot more to a lot less money available for compensation. I think these are likely to be edge cases, though.

 

[s0me0nesmind1]

My guess is that most of that money would need to be paid to the government in the form of some new health care tax in order to offset the greater expenditures. You would end up with less desirable health care (whether just a little or a lot is up for debate), but your employer may not have as much money as you think to increase your compensation.
Now, some employers use their health insurance offerings as a differentiator to their competition when hiring competitive candidates. With the health insurance being equalized, some companies may need to increase compensation to keep from losing their best employees.
It is also possible that some companies are currently in particularly high or low rate insurance markets and may have anywhere from a lot more to a lot less money available for compensation. I think these are likely to be edge cases, though.

Probably the best answer here.

Otherwise (as Glenn1 said) the employers will gladly pocket it.

 

[Homerboy]

I haven't posted here in quite some time, so I apologize if this has already been discussed in detail. I did a quick search on here and did not see a discussion that pertained to my question.

Anyway, my employer currently pays $19,968 per year for healthcare for my family. It's pretty good coverage. I have a $1,000 deductible for my family, and virtually all doctors and clinics accept my insurance.

So my question is - if employers were no longer on the hook for that $19,968, how would you expect employee compensations to change? I would expect salaries AND federal taxes would increase, but I'm curious to know if anyone is willing to speak to what the likely scenarios would be. I know that's a loaded question, and I'm sure there isn't a single answer.

I've had this discussion and (loosely) tried to make this point before.

It's obviously impossible to say EXACTLY how it would work (as there are no laws directing how it would work), but it would make sense that instead of the employer (and employee) paying those premiums to the insurance companies, they would come out of their checks and bottom lines as tax items going to the US Gov't to pay for the single payer coverage. The employer may end up paying more... or paying less. Impossible to say obviously.

And if it didn't work that way - if employers were not taxed at a higher rate to pay into single payer - then US businesses would see a HUGE increase in their bottom line.

I've often wondered if there is math out there showing if everything CURRENTLY being paid to insurance companies bu employers and employees were dumped into a NATIONAL general fund to pay for single payer, would we all come out ahead? (except for the insurance companies who are the REAL problem with health care)

 

[dank69]

My guess is that most of that money would need to be paid to the government in the form of some new health care tax in order to offset the greater expenditures. You would end up with less desirable health care (whether just a little or a lot is up for debate), but your employer may not have as much money as you think to increase your compensation.
Now, some employers use their health insurance offerings as a differentiator to their competition when hiring competitive candidates. With the health insurance being equalized, some companies may need to increase compensation to keep from losing their best employees.
It is also possible that some companies are currently in particularly high or low rate insurance markets and may have anywhere from a lot more to a lot less money available for compensation. I think these are likely to be edge cases, though.

I don't think it is possible to have less desirable health care than some of the offerings these days.

 

[pauldun170]

I haven't posted here in quite some time, so I apologize if this has already been discussed in detail. I did a quick search on here and did not see a discussion that pertained to my question.

Anyway, my employer currently pays $19,968 per year for healthcare for my family. It's pretty good coverage. I have a $1,000 deductible for my family, and virtually all doctors and clinics accept my insurance.

So my question is - if employers were no longer on the hook for that $19,968, how would you expect employee compensations to change? I would expect salaries AND federal taxes would increase, but I'm curious to know if anyone is willing to speak to what the likely scenarios would be. I know that's a loaded question, and I'm sure there isn't a single answer.

Overall, compensation will not change.
Executive compensation will see a bump for the year as they "help navigate challenging market changes in response to government mandates".
You'll see layoffs as some of the roles in HR\Legal\Administration or now not needed.
You'll see some charge offs for accounting \restructuring.

If you were hired @ 100K plus benefits, they will simply change the meaning of benefits.
Benefits now mean wellness campaigns where they encourage you to go be active in your personal life and a pamphlet on how to be pleasant.

 

[interchange]

Obviously the money has to come from taxes somewhere. Either from income tax or from payroll tax or some other new tax.

I think more saliently we're never going directly to single payer. The healthcare industry is too large to allow such a sudden shift to happen. Possible a gradual Medicare expansion, for instance, with employee benefits functioning more as a supplement. How it happens will dictate how the payment is collected.

 

[1prophet]

I haven't posted here in quite some time, so I apologize if this has already been discussed in detail. I did a quick search on here and did not see a discussion that pertained to my question.

Anyway, my employer currently pays $19,968 per year for healthcare for my family. It's pretty good coverage. I have a $1,000 deductible for my family, and virtually all doctors and clinics accept my insurance.

So my question is - if employers were no longer on the hook for that $19,968, how would you expect employee compensations to change? I would expect salaries AND federal taxes would increase, but I'm curious to know if anyone is willing to speak to what the likely scenarios would be. I know that's a loaded question, and I'm sure there isn't a single answer.

Here is the $19,968 question, do you pay that amount, the $19,968, or a percentage of that amount,

the reason being when a married couple working separate jobs with insurance decide to drop one and cover both under whichever is the better plan, the one dropping insurance only sees whatever amount they were having deducted from their paycheck reimbursed, not the full amount the employer was paying.

Also, most people don't see the full amount thinking that the amount deducted from their paycheck is the price of health insurance until they get laid off and elect the cobra plan to continue insurance, and they have to pay the full amount plus administrative costs.
https://www.insurance.com/health-in...basics/what-you-need-to-know-about-cobra.html

After you quit or lose a job, you can temporarily continue your employer-sponsored health insurance coverage through a federal law known as COBRA.

But here's the catch: You have to pick up the entire tab, plus up to 2 percent for administrative costs. Prepare for sticker shock if you're accustomed to the employer paying the premium.

So unless some law is passed requiring the full price reimbursed into your paycheck, most employers will probably reimburse you the percentage you were paying while pocketing the rest.