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Employer health plans are getting pricier and skimpier

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Re: Employer health plans are getting pricier and skimpier

#21

Post by vkou »

ceejayoz wrote: post #7
non-entity wrote: post #2

I was just thinking the other day. Every job I've had has offered health insurance through the state BCBS. Those plans are ways a little over $100/m (for a single worker) Meanwhile, I've had people brag to me about paying $10/ for damn to near full coverage. I'm starting to wonder if BCBS employer plans are just garbage

The average health insurance monthly premium for individuals is a couple hundred dollars ($321 in 2017 per https://www.cnbc.com/2017/06/23/heres-how-much-the-average-a... ; it'll be higher now). $10 or $100/month both mean the employer is chipping in a bunch, they're subsidized via the exchange due to low income, or they've got absolutely garbage coverage that won't actually pay for anything significant. This is why…

My wife just took a job at a place that has a 'good' health insurance plan.

If she opted into it, her contribution would be ~$300/month, her employer's contribution would be $900/month.

If she wanted to cover me with it, her contribution would be $1,500/month, and her employer's would be $900/month.

Unsurprisingly, we did not take advantage of this, and she remains on my insurance (Since my employer handles 90% of the premium for both of us.)

When we were still dating, I had a good look at what the $300/month health plans provided. Absolutely flippin nothing. Deductibles of $8,000/year, and co-pays of 25%. If all you can afford is a $300/month plan, there's no way in hell you can afford an $8,000/year + 25% medical bill.

Meanwhile, Canada provides universal healthcare for $5,200 USD/year/person, with similar health outcomes.

Edit: fixed a typo in the employer's contribution.

Re: Employer health plans are getting pricier and skimpier

#22

Post by throwaway66920 »

throwaway_law wrote: post #14
badrequest wrote: post #5

The sooner we can completely divorce healthcare from employment, the better.

I hear this statement all the time...but what does it mean? If employers didn't provide health insurance to employees wouldn't we just wind up with 40% of the insured uninsured? Its not like Corporate America is going to make up the difference and start paying cash to compensate for the lost benefit, at least thats what happened as pensions got stripped away from the workplace. Even if the employer's did make up the…

Getting insurance as an individual is expensive because you’re not part of a group plan. With a group plan the insurance company has some reason to believe you’re not collectively a bunch of dying people committing moral hazard, you’re just one of a generally similar looking company workforce.

If employers stopped providing it, I think it is presumed that the mentality towards individual plans would change

Re: Employer health plans are getting pricier and skimpier

#23

Post by throwaway_law »

tempsy wrote: post #10

Yep, and what people don't always realize is that because employer health plans get more expensive every year for employers, it negatively impacts wage growth. You are paying for it even if you don't necessarily feel it.

But the individual policies on the exchange have increased year over year as well, and a lot of those insurers on the exchange went out of business/disappeared after 2-3 years anyway.

(from 2017-2018 for example insurance on the exchange increased 32% for silver plans and 20% for Gold plans)

Re: Employer health plans are getting pricier and skimpier

#24

Post by lotsofpulp »

ceejayoz wrote: post #18
throwaway_law wrote: post #14

Earlier quoted context omitted.

I hear this statement all the time...but what does it mean? If employers didn't provide health insurance to employees wouldn't we just wind up with 40% of the insured uninsured? Its not like Corporate America is going to make up the difference and start paying cash to compensate for the lost benefit, at least thats what happened as pensions got stripped away from the workplace. Even if the employer's did make up the…

> individuals can't negotiate individual insurance rates, pools of employees can negotiate group rates, so if anything costs would probably go up This is why the exchanges exist. They're huge pools of people on a group rate. New York state negotiates with insurers on my behalf, and is additionally able to regulate their premium increases each year.

And the nice, healthy white collar lived are locked away in employer group health plans, resulting in fewer insurance companies being able to offer insurance on healthcare.gov, resulting in higher premiums for lives on healthcare.gov.

Another advantage for big businesses over small businesses.

Re: Employer health plans are getting pricier and skimpier

#25

Post by tschwimmer »

throwaway_law wrote: post #14
badrequest wrote: post #5

The sooner we can completely divorce healthcare from employment, the better.

I hear this statement all the time...but what does it mean? If employers didn't provide health insurance to employees wouldn't we just wind up with 40% of the insured uninsured? Its not like Corporate America is going to make up the difference and start paying cash to compensate for the lost benefit, at least thats what happened as pensions got stripped away from the workplace. Even if the employer's did make up the…

I think the implication of the GP's comment is that we still provide it, we just don't tie it to employment. There are a lot of nasty side effects of this coupling, including decreased employee mobility.

Re: Employer health plans are getting pricier and skimpier

#26

Post by throwaway_law »

tempsy wrote: post #20
throwaway_law wrote: post #14

Earlier quoted context omitted.

I hear this statement all the time...but what does it mean? If employers didn't provide health insurance to employees wouldn't we just wind up with 40% of the insured uninsured? Its not like Corporate America is going to make up the difference and start paying cash to compensate for the lost benefit, at least thats what happened as pensions got stripped away from the workplace. Even if the employer's did make up the…

We would do what every other country does and offer healthcare as a basic right? The whole point of "Medicare for All" is to divorce employers from their employee's healthcare. The gov't negotiates on behalf of everyone.

Its not exactly a chicken and egg problem then, and the solution doesn't start with divorcing insurance from employment.

Put that "Medicare for All" into play first.

Re: Employer health plans are getting pricier and skimpier

#27

Post by Ididntdothis »

throwawaysea wrote: post #19

The entire health insurance industry makes ~$25B in profits a year, correct? That doesn't seem overly large considering it is the entire insurance industry.

It’s not only profit. They also cause a lot of administrative overhead. For example if doctors had to deal only with one insurer or at least one coding system they wouldn’t need four billing assistants as I have seen. In essence insurance companies do a lot of unnecessary stuff. Their profit is only a small part of that cost.

Re: Employer health plans are getting pricier and skimpier

#28

Post by tempsy »

throwaway_law wrote: post #23
tempsy wrote: post #10

Yep, and what people don't always realize is that because employer health plans get more expensive every year for employers, it negatively impacts wage growth. You are paying for it even if you don't necessarily feel it.

But the individual policies on the exchange have increased year over year as well, and a lot of those insurers on the exchange went out of business/disappeared after 2-3 years anyway. (from 2017-2018 for example insurance on the exchange increased 32% for silver plans and 20% for Gold plans)

I don't understand what that has to do my comment. I never mentioned anything about the exchanges. Health insurance policies generally get more expensive year over year for everyone, whether an employer is paying for it or you as an individual.

Re: Employer health plans are getting pricier and skimpier

#29

Post by coldcode »

In no other country is your healthcare tied to your employment but the US. Germany has had a national healthcare system since around 1880 (after the country was unified, based on what Krupp did for their employees). Why is the US the outlier (also in cost per capita)?
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