You are keeping the benefit....but now in cash. Worked great pre-1945...promotes competition and works good for companies like Whole Foods: http://khn.org/morning-breakout/dr00024371/
It’s a tax code problem.
I'm getting shafted. Even if my employer did increase my salary by an equal amount that would be taxed as income. Also my premium went up about 4% over last year. Three years ago it actually went down. I'm not faced with the 20% or 30% or higher increases that people in the open market face because my employer self-funds health care costs and contracts with a company to manage it for them. Since they are dealing with a smaller population to ensure, they can better estimate costs. By providing it as a benefit they have no problem getting the younger and healthier employees to join. It's a win/win for my company and me, and one you would take away from both of us.