Employer-Sponsored Health Insurance: What You Need to Know
In a recent interview with KOTA, Senator John Thune discussed the pending legislation known as the One Big Beautiful Bill Act. This act, proposed by President Donald Trump, could potentially lead to millions of people losing access to Medicaid and Affordable Care Act marketplace health insurance plans. Thune emphasized the importance of employer-sponsored health insurance, stating that “a lot of times, health care comes with a job.”
While it is true that many Americans receive health insurance through their employers, the relationship between employment and work-based coverage is not always straightforward. According to experts in the field, most jobs do offer health insurance, but there are factors to consider beyond just having a job.
Matthew Rae, an associate director at KFF, a health information nonprofit, explained that employer-sponsored coverage is a fundamental way for people in the United States to access health insurance. However, simply having a job does not guarantee access to health insurance. In fact, data from KFF shows that about 28% of eligible workers who did not enroll in their workplace insurance cited cost as a barrier.
The affordability of employer-sponsored insurance varies significantly by income level. Lower-income families insured through a full-time worker may spend a larger percentage of their income on premiums and out-of-pocket costs compared to higher-income families. This disparity highlights the complexities of the current system and the challenges that many individuals face in obtaining and maintaining health insurance through their jobs.
Furthermore, the ACA has played a significant role in reducing the rate of uninsured individuals by creating private marketplace plans and expanding Medicaid eligibility. The One Big Beautiful Bill Act, if passed, could make it more difficult for people to qualify for or afford marketplace plans, potentially leaving many without access to affordable health insurance.
In conclusion, while it is true that health care often comes with a job, the realities of employer-sponsored health insurance are more nuanced than a simple correlation between employment and coverage. Cost, quality, and access to care all play a role in determining the effectiveness of employer-sponsored insurance. As lawmakers consider the future of health care policy in the United States, it is essential to address these complexities and ensure that all Americans have access to affordable and comprehensive health insurance coverage.
