[rupertm]

Absolutely they do. Employers don't have to chip in for basic insurance... that's already paid for. Employers end up taking part of that money and throwing it into extended benefits: in Vancouver I get $200 every 2 years for eyeglasses, $400/y HCSA (covers massage, acupuncture, nutritionist, etc.), $1500/y dental, fantastic Rx coverage, 1x/annual income life insurance, etc etc etc. - all of which costs the company less than what it costs the same company to provide basic insurance to their employees in the USA.

Sure, the employee pays more in income tax, but there's no lifetime maximum on claims, no 'taking a chance' and hoping you don't get sick, no gambling with your health period. For me that extra 6% I pay in income tax is well worth it.

[wisty]

Also, everyone pays the same price (through taxes), so big companies don't get any advantage from their stronger negotiating power.

OK, there's also private insurance (for stuff like dental, and private hospitals). But since companies aren't expected to pay it, it's more competitive.