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I would contend that the root cause is that we expect our employers to provide our health insurance. We don't (usually) expect them to provide our housing, food
by smanek 17y ago
I would contend that the root cause is that we expect our employers to provide our health insurance. We don't (usually) expect them to provide our housing, food, car, or other necessities of life.
I'm not an accountant, but I understand that there are tax advantages for corporations to provide insurance (instead of just giving me cash, so I can choose my own insurance).
The market is much more efficient (e.g., I can more easily and directly signal what is important to me) if the consumer of a good is also the purchaser.
- jhancock 17y agoThe root cause is that only your employer can afford to buy you coverage and also has less risk of getting dropped if they provide coverage for enough people. As an individual, the coverage costs more and your chances of getting dropped is over 50% if you do need care exceeding your premium.
- smanek 17y agoThe reason the market is so unfriendly to individual purchasers (high cost, possibility of getting dropped, etc) is that the entire industry is built around and optimized for selling to large corporations.
- pfedor 17y agoDo you have a source for the 50% number?
- jhancock 17y agoHere's a few articles pointing to the number. I assume that an individual buyer faces a higher rate of recission than those in a large group. http://tauntermedia.com/2009/07/28/unconscionable-math/ http://tauntermedia.com/2009/07/28/unconscionable-math/ http://www.walletpop.com/blog/2009/09/02/think-youve-got-health-insurance-better-double-check-and-be/ http://www.walletpop.com/blog/2009/09/02/think-youve-got-hea... http://wintershaven.net/2009/08/04/recission/ http://wintershaven.net/2009/08/04/recission/ http://www.nasdaq.com/aspx/company-news-story.aspx?storyid=200906161521dowjonesdjonline000607 http://www.nasdaq.com/aspx/company-news-story.aspx?storyid=2...
- mcculley 17y agoI wish it were true that there were a free market that employees can participate in. I run a small company. If I were to take the monthly premium I pay for my employees and instead give it to them as cash, they could not get health care or insurance anywhere near as good.
- earl 17y agoAnd I would contend (because I'm right) that you have no idea what you're talking about. The single most important feature of group health coverage, even more than the lower costs, is the fact that they generally don't (and in many places can't) require health exams beforehand. This is obviously crucial for people with health problems. For example, if you are a survivor of many types of cancer, private health insurance is unavailable at any price. Perhaps you should take 2 minutes to educate yourself instead of spewing market efficiency nonsense.