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Re: dissimilarities between health insurance and o

Started by dconra12, 11/11/2009 06:41PM
Posted 11/11/2009 06:41PM Opening Post
Scott, we have to remember when "Health Insurance" came into general acceptance. During WW-II when wages were controlled by the government, employers started paying for their employees doctor bills leading to insurance as a benefit aimed at increasing the effective pay in excess of the wages set by the government. This benefit was continued, either voluntarily by the employer, or via contract with the unions. Most receipients of company supplied or subsidized insurance are ignorant of the insurance concept as well as the insurance costs being part of their compensation. The compensation aspect hasn't been missed by the politicians as they have been talking about taxing the benefit as income.

Most folks these days figure they need to see a doctor every time they get a runny nose, and God forbid if they have to pay for an office visit.

I must be getting old, when we went to a doc when I was young you had a cut so big you couldn't tape it shut, broke something that needed setting, or had a temperature of 105 or so you couldn't break with chicken soup and asprin; even then you didn't worry too much unless delirium set it. My spelling isn't too good but I think you get my drift.
wink wink
Posted 11/12/2009 05:38AM #1
When I got laid off last June I found some interesting things about health insurance. Blue Cross Blue Shield of NC actually has a number of policies, from the all-inclusive coverage to the bare bones. One thing I found out it that it is a myth that group insurance policies through employers is cheaper than individual. It's actually more expensive per policy. Much more expensive. In round numbers, my former employer was paying $400 a month for my group policy. BCBS will offer me the same policy as individual with the same coverage for $300 a month. I can even get policies for as little as under $130 a month. Now if instead of offering group insurance, my employer had given me $250 a month for purchasing my own health insurance, I could have had a policy that is very close to what I had in coverage with the group plan. The company would save about $1000 a year, and I would actually being paying less as I had to pay a percentage of my group insurance premiums. The government could further help by making my individual insurance premiums directly tax-deductible, or give a tax credit, which the Democrats steadfastly refuse to do.

Some employees can elect to get a cash benefit in lieu of their company's group health insurance, so they can go out and buy their own insurance. If you work for the federal government, or a private company with government contracts, employees can do this. My wife elects to have her company pay her premiums in a group plan because it works for us. But many of her co-workers elect to opt out the the group plan and buy their own insurance, or get on Medicaid, and pocket the extra $100 a week on their paychecks.

David E