Employer-Based Healthcare Plans
The employer-based healthcare plan is an insurance policy that has been purchased by one’s employer and is being offered to eligible employees and their dependents. The employer-based coverage is advantageous in that it covers both the employee and their family (Buchmueller & Monheit, 2009). A given amount of insurance is allotted for employee family.
Employer-based healthcare is criticized for causing job lock. Job lock is a phenomenon where employees are discouraged from changing jobs lest they lose insurance benefits. Madrian (1994) argued that job lock impacts negatively on the labor market mobility and makes it hard for an employee to move to a suitable job.
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Individual Healthcare Plan
Individual health insurance plan is a type of coverage purchased by an individual with no association with an employer. One can choose coverage for either themselves only or may incorporate their family. The individual plan varies from the public in that the coverage is limited. Additionally, services such as abuse treatment may not be covered.
The individual plan is advantageous in that those under it wait for a short time to receive services (Brennan, 2018). This is especially true for those undergoing elective surgery. Under the public system, one would have to wait for a long period for treatment of rarer illnesses that require expertise from a specialist.
The disadvantage of the plan is that it creates inequality (Iglehart, 2004). Healthcare providers and insurance companies involved in private plans ensure that this group gets priority treatment since they are willing to pay. Basing the priority on one’s ability to pay rather than the severity of medical condition creates inequality.
References
Brennan, H. (2018, May 18). The pros and cons of private medical insurance. Retrieved from https://www.telegraph.co.uk/insurance/health/pros-cons-private-medical-insurance/
Buchmueller, T., & Monheit, A. (2009). Employer-Sponsored Health Insurance and the Promise of Health Insurance Reform. The Journal of Health Care Organization, Provision, and Financing . doi:10.3386/w14839
Iglehart, J. K. (2004). The Challenges Facing Private Health Insurance. Health Affairs , 23 (6), 9-10. doi:10.1377/hlthaff.23.6.9
Madrian, B. V. (1994). Employment-Based Health Insurance and Job Mobility: Is There Evidence of Job-Lock? Employment-based health insurance: a look at tax issues and public opinion , 109 (1), 27-54. doi:10.3386/w4476
