There is also the fear that individuals will not be good buyers of care on their own and susceptible to scam artists. A transition from the insurance concept is going to blow up the ranks of the uninsured and increase the need for government to come in and get involved.

With the costs rising and the smaller companies beginning to no longer be able to afford coverage at all, many employees are going to be faced without having any insurance. Not only are benefits cuts at individual companies increasing the number of uninsured; a shift in the workforce from manufacturing to services, which normally offers less benefits, is occurring as well. All one has to do is see what is happening at the Wal-Marts, and similar companies in terms of benefits and compare that to what is happening at organizations such as General Motors, which once was the largest employer like Wal-Mart. Increasingly, state and federal governments will have to pay for more with the Medicare Reform Act a sign of what is in store.

3) Cuts to...

They are what make the economy run or crash and dive. The theory goes that these slashes in benefits are going to bring lower consumer income, which "translates into lower consumption," says Salisbury. "And to an economy extraordinarily dependent on consumer spending, that creates problems for American business."
Employeers can do something to prepare for these 2020 health benefits problems that will be coming sooner than later. They can structure plans to secure as much future purchasing power for employees as possible. One way of doing this is to redesign 401(k)s so all assets stay in the account at all times. This means rethinking provisions that permit employees to get available cash through lump-sum distributions, hardship withdrawals, and loans. They have to be preventative and start preparing for what may take place soon.