LogFAQs > #942536368

g980 posted...

I think you are underestimating how much employers will try to skimp on health plans

don't confuse mcdonalds with [insert law firm, tech company, or defense contractor here]

yes, mcd et al are looking for the cheapest possible plan that suits the federal requirement that they provide one. because they are not providing the plan as an incentive to workers but to check a box for the government. because the salary is well below the threshold for basic needs, if the company needed to raise some compensation form to draw in more/better workers, it'd be pay not benefits.

for white collar jobs, employers go in the opposite direction and lavish on health plans, specifically because they are getting tax-subsidized for doing it but also because the workers respond to that incentive at a level comparable to salary increases, since the salary is already far above the threshold to meet basic needs. the nature of our insurance system means they're either buying that insurance through their employer or much more inefficiently on the open market, so a good policy is desirable.

white collar workers don't have a good sense of what kind of health plan would be efficient for them, but they DO have a good sense for what kind of health plan is woefully insufficient.

and because buying multiple group plans is inefficient for the employer, they tend to buy the most lavish plan.

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