Fri 29 Dec 2006
My New Health Insurance Rates – What a Rip Off!
Posted by RichSlick under Rants, Watch Out
[8] Comments
It is getting so ridiculous now to pay for health insurance that I am certain we are on the verge of the collapse of the health insurance industry. Our new health insurance premiums were unveiled this week at my company and I now have the privilege of paying $450/month for health insurance.
It gets worse! I’ll have $500 deductible (per family member) and Out of Pocket of $4000. Coverage is 90% so I’ll pay the remaining 10% out of pocket too. It gets even worse for out of network but I’ll likely stay in network to avoid that nightmare.
So let me do some math. $450/month + $166/month (deductibles) + $333/month (Out of Pocket) = $950/month for health coverage plus I still need to cover the remaining 10%.
These calculations assume that we’ll fully hit our deductibles and have one $4000 out of pocket major expense. Based on historical usage, these calculations are about right. No matter how careful we are with our health things happen – kids break arm, wife twists knee, etc. Does anyone think $950/month is truly ridiculous? I’m not even adding in prescriptions or other stuff like emergency visits.
As bad as these expenses are they are really only the half of it as my employer picks up about 60% of the expense on the business side of things so it’s really costing about $1800/month to insure an employee and that is totally ridiculous.
Ultimately, this may be the last year I pay health insurance premiums since it will become officially cheaper for me to fly my family first class to Mexico, South America, Canada, the Carribean or perhaps India to receive medical treatment than to utilize American health care.
8 Responses to “ My New Health Insurance Rates – What a Rip Off! ”
Trackbacks & Pingbacks:
-
[…] here, you may want to subscribe to my RSS feed. Last week, I ranted about the ridiculous cost of health insurance unveiled at our company. Today, we had the insurance carrier give us a walk through of all the […]
Sounds way too much for a high deductble plan IMO. I MIGHT understand if it was the non-deductible type.
To be fair, I must say the company offers other plans that are slightly cheaper at $350/month and $300/month but the coverage deteriorates badly at those levels.
The $350 plan has $8,000 out of pocket and the $300 has $10,000 out of pocket! Both have $2000 deductibles vs. $500. These plans only offer 80% coverage and have caps.
Easy there, Rich.It sounds as if your contradicting yourself from your Forget Frugalism,Embrace Capitalism post.Just think about the positive things your health care premiums are doing for the economy.:)
Ahhh C but there is no contradiction. The REASON health insurance is out of control, at least partially, is because of continuing government interference such as requiring all sick people get (FREE) medical treatment even if they can’t pay when they show up to a hospital or emergency room, government placing limits on certain premiums or requiring coverage for people that insurance companies don’t really want to insure (e.g. smokers, alcoholics, drug users, etc).
A real capitalist health care system really wouldn’t need health insurance anyway – the history of health insurance is so convoluted that it stems from the creation of quirky tax law from the 40s. The only reason I’m forced to use it is because believe it or not the government REQUIRES me to carry insurance for my kids just like they REQUIRE me to carry insurance for my car. Forcing someone to do something isn’t capitalism it’s socialism.
Of course, the only fix I hear anyone talking about these days for health care is to socialize it anyway so who knows what will happen….
It seems like the government could care less about the working man’s health care coverage. While families with welfare-subsidized incomes and non tax-paying aliens receive free medical care, tax-paying working men and women pay monthly premiums like these and still have to cover 10-20% at the time of service.
The latest band-aid the govco has slapped on is the pre-tax Health Savings Account. Eligible participants can save for the ultra-high deductible with pre-tax contributions in the HSA, but you’re still paying for the majority of the services with your own money even though you’re paying monthly premiums for insurance.
Maybe the nation’s medical expenses are just uninsurable? Or maybe the free-riders are inflating rates for the rest of us.
Something’s gotta give and soon.
There’s an interesting article in the LA Times talking about this http://www.latimes.com/news/local/la-fi-reject31dec31,0,6033834.story?coll=la-home-local
I don’t have an answer to the problem I just know it’s all about to come crashing down.
If I could wave a magic wand I think I would require universal health care for kids 0 – 18. After you hit your 18th birthday you’re on your own.
I would also limit health coverage for people who chose to smoke, drink excessively, too fat, etc or require them to pay additional premiums just like they would for car insurance if they were reckless drivers, speeders, etc. The free market can take care of this issue but it doesn’t make any sense for me to subsidize poor lifestyle choices!
I have been involved in healthcare (specifically Health insurance since 1988) I have worked in Actuary offices, Medical Claims, and Health Insurance Sales Departments. Since 1991 I have owned my Own Health Insurance Brokerage. I have over 1000 Active Clients, my retention rate is the highest in the industry. I give my clients a Rational Mathematical Equation as an explanation to healthcare, one that took 20 years to develop. I consider what the plan will cover/ and will not/ out of pocket max.s;/ Lifetime max./ deductibles/ co-insurance / ET.
What I need to CAlculate your Plan Design:
Monthly Premiums:
Plan EOC/ Or Plan Name:
Ie. Blue Cross PPO 2500
———————-
Email address:
and I will show you what your insurance company does not want you to know…