Part II of a series. Part I is here.

In the US healthcare system, the predominant non-government source of health “coverage” comes from the employer. While these strange bedfellows may have been put together by wage freezes during World War II and tax laws favoring employer purchasing, it would be expected that employers receive significant benefits for the billions spent annually on healthcare as the predominant portion of the benefits package.

So what do employers get out of the bargain? And where would we expect them to do to improve those returns? Lets take a look.

Reasons employers offer healthcare:

  • Part of package to attract and retain talented employees
  • Tax savings relative to salary
  • Improve worker productivity
  • Community goodwill

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