I know, this is an ultra-rare post. But a friend on Facebook posted a meme about the cost of health insurance, which basically challenged me to write a post that clarifies a few points about the cost of health insurance. So my friends, here is a post about health insurance. Enjoy, and please be sure to check me out at my usual home of blogging mayhem, Father Nature's Corner.
The maim of the game is Health Insurance, and the object of the maim is to keep as many body parts attached to your bloated entitlement that you call a body, while at the same time inflicting as many paper cuts as you possibly can on the those seriously-not-in-touch-with-the-common-folk CEO's.
The reality is a bit more mundane than that. The reality is trying to break the cycle of the proverbial Money For Nothing And Your Chicks For Free.
As far back as I care to remember, people who are on the entitlement kick, which is about 65% of the American population, whine about the profits that the insurance companies make. Granted, while some of the profits may be astronomical, they certainly pale in comparison to what other companies in other industries make that we turn a blind eye to.
Today's post will be History 101-Health Insurance, and hopefully, after you've heard from someone who has seen it all pre and post ObamaCare, your opinion might soften just a tad about health insurance companies and hopefully your anger will increase towards the nanny/socialist program that is ObamaCare.
Prior to ObamaCare, if you wanted to keep you child on your health insurance past the age of 18, which is when you were forced to take your child off your health insurance, you either had to pay through nose, plus an arm and a leg right then and there out of your paycheck; or come April 15th when it came time to file your taxes. I know this sounds a tad confusing, so let me expand and expound just a tad.
Please note, the following examples deal with the state guv'ment sector, of which I've spent that past 15 years doing payroll for. It may or may not be the same in the private sector.
If you had a qualifying child, which (usually) meant that your child was busy going deep in unimaginable debt at the local college/university, and wanted to keep your child on your medical insurance (no dental, 'cause once you turned 18, you got kicked off), you had to pay extra for it. And that extra, for the purpose of this example was $250, was taken directly out of your bi-weekly paycheck.
Now, if you didn't have a qualifying child but still wanted to keep your overage child on your health insurance, you didn't get the premium deducted out of your paycheck. Instead, when it came time to do your taxes, the total cost of your share and the state's share of the premium was added on to your net taxable income, which in turn you then paid. How much extra? For this example, roughly $12K.
You read correctly ladies and gentlemen, twelve thousand dollars. Definitely not chump change.
So people, to give some serious thought about what would be the cheaper option to pursue: pay through the nose at work, pay through the mouth using COBRA (it's basically point #1), or pay through the entire face on the open market.
But wait, it gets a lot better for the consumer and much worse for the insurance companies.
ObamaCare came with its own set of insidious rules of entitlement/engagement that made the 65% of the country who enjoys Money For Nothing happier than a boy reading Hustler.
1} No more having to determine who was a qualifying child, 'cause now every child qualified.
2} No more having to kick a child off the insurance, 'cause every parent was now forced to keep their child on until they were 26 or found a job with benefits, whichever came first. And sometimes, even when the child landed a job with benefits, they still stayed on mommy and daddy's medicals.
3} No more charging higher premiums for carrying an overage child, 'cause The Nanny said so. Free is free, and you can't change that.
4} No more denying coverage for certain pre-existing conditions or charging higher premiums for pre-existing conditions (except maybe dwarfism), 'cause The Nanny said so.
5} You had to buy health insurance or else pay a tax penalty.
In a nutshell, insurance companies were force to shell out more money for claims for sicker people. Previously, money spent on claims for sicker people was recouped by charging higher premiums to those who chose to carry thier children on their health insurance or to those were normally healthy and worked in jobs that offered Cadillac insurance (some labor unions have that). So now, the only way that they can recoup those monies is to charge more for health insurance plans offered to individuals or small business with more than 50 people, both of which didn't give you bang for your buck.
In a perfect world, ObamaCare was suppose to level the playing field 'cause everyone would have health insurance. Problem was, in the real world if you have an ever increasing pool of high risk consumers and a perpetually shrinking pool of healthy consumers (whose premiums actually support the high risk consumer to a certain degree), you have businesses that are going to take their ball and go home, 'cause really the goal of all business is to make money.
And what good is having a business that is forced by The Nanny to keep thing artifically low through maze of hideous rules designed to share the wealth? Not very good at all. When you have a business that is unnecessarily regulated by The Nanny, the only viable option you have at your disposal is to quite the business. Not quitting what you're doing, but quitting The Nanny. Less stress and less aggravation.
Always remember this salient point: in any kind of business that the guv'ment participates in, those who can support those who won't.
(c) 2016 by G.B. Miller. All Rights Reserved