Health Justice Newsletter
April 2025
Job-based Health Insurance Has
Failed Both Employers and Working Families
If you are an employee
The rising costs of coverage has forced many working families into high-deductible plans.The average annual deductible for a single working person with a deductible was $1,787, 47 % higher than a decade ago.
For union workers, inordinate effort goes into negotiating health coverage, distracting from improvements in wages, benefits and working conditions.
Family household income (after employee contributions to health insurance) increased only 7% between 2000 and 2012- a major hit to financial stability.
Unlike most other countries in the world, we link much of our health insurance to our employment. As a result, when you lose your job, have extended medical leave, or go on strike, you are likely to lose your coverage. We were made keenly aware of this during the pandemic, when millions of working families lost their coverage.
How many working families lost coverage in the following countries lost coverage due to the pandemic?
Australia, Belgium, Canada, Chile, Denmark, Finland, France, Germany, Greece , Hungary, Italy, Japan, New Zealand, Norway, England None!
(Because their coverage is not linked to employment)
If you are an employer
For employers, health insurance costs for family health insurance have increased from $10,157 in 2000 to $25,572 in 2024, a 152% increase!
And these costs particularly impact small employers, who are charged an average of 14% more than large employers.
These costs are a top problem for small-business owners, according toa recent poll.
Employers are looking for ways to cut those costs, often by passing on the burden to employees and their families.- or in some cases dropping coverage completely.
Clearly job-based coverage is not sustainable.
How do we effectively address this mess?
A single-payer healthcare system would coverall residents with one publicly financed and administered plan. It would bring down the overall cost of healthcare and eliminate the need for job-based insurance. Businesses would contribute to the healthcare trust fund, with small businesses not expected to contribute anything to the fund. Medium-sized employers would contribute at levels significantly lower than their current premium and administrative costs.
Only the largest businesses would be required to contribute substantially more.
Coverage would be provided to all-including full-time, part-time, temporary, unemployed or undocumented, personally insured by the public plan with richer benefits than any current public or private plan.
Employer relief from the distraction, cost, and time now spent managing employee health benefits.
Level playing field- Employers of similar size would contribute comparable amounts to the health fund. Employees in all companies would have the same benefits. On a local level, employers would compete for employees based on wages and working conditions.
On an international level, American companies would be competitive with countries that have universal healthcare.
Entrepreneurship made easier- Today, the cost of health insurance prevents many from striking out on their own. A single-payer system supports individual initiative by guaranteeing personal, portable coverage.
Motivated employees- Workers would no longer look for a job based solely on the benefits. Employers can attract employees who are drawn to the business for the right reasons.
Wage increases- Employers would have more opportunity to raise wages Is such a change a pipe-dream?
Actually, no. If implemented in CA, despite covering everyone with a richer set of benefits, it has been estimated by a state-sponsored commission to save our state over a half a trillion dollars in the first decade of implementation, with savings beginning in the very first year.
A bill passed in the legislature and signed by the Governor has started a planning process that is actively considering such a plan. This legislation was passed with the support of our working group .
What are we doing to move this forward?
We have initiated, with our colleagues in Marin and Humboldt, a campaign of deep, nonjudgmental listening-sessions with business owners to hear about their experiences with providing health insurance, and gathering that information for state legislators and the state planning process. Finally, we are sharing with the owners our assessment of the benefits of a single-payer system.
How can you help us?
If you own a business, consider giving us (and legislators) this input. If you have an acquaintance who owns a business, consider asking them if we can connect, and then contact us at [email protected].
Even better, join in on our listening sessions!
We can make this happen with your help!
The next general meeting
of the Healthcare for All Working Group
is on Monday, April 14 @ 6 on Zoom
Zoom link to our meeting
We hope you will join with us.
Quote of the month
"We can have democracy in this country,
or we can have great wealth concentrated in the hands of a few, but we can't have both".
Louis D. Brandeis
Healthcare for All Working Group
Sonoma County, California
Contact Us
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