WHY WHY WHY!!!! Is so-called "affordable" health insurance so ridiculously expensive???

Question

Here in WI they consider $479/month for a married couple affordable! That is with a $2500 deductible!! It just doesn't make any sense to me. Can anyone tell me why the rates are so very UN-AFFORDABLE? One simply can't afford to get sick or maintain one's health...

Answer 1

I am assuming you have an individual policy. The premiums are high because there is typically "adverse selection" (i.e. typically it's the unhealthy individuals or high utilizers who buy these policies) in the individual market.

If there are no flat dollar co-pays or a drug card attached to the policy (i.e. every service, including retail prescription drugs) is subject to the deductible or covered at a % of charge (coinsurance), this policy would qualify as a "High Deductible Health Plan" (HDHP).

According to IRS rules, if you have an HDHP and no other health insurance coverage, you can contribute money into a Health Savings Account (HSA). You can deduct the amount of your HSA contribution from your federal income taxes. You may withdraw the money in the HSA to pay the deductible and other health care costs like dental and vision expenses. To be an eligible expense it must be listed by the IRS as such.

If you take advantage of the HSA you will be paying the deductible with before tax money instead of after tax money. This will lessen your tax bill to Uncle Sam. You can invest the HSA dollars in any manner, just like an IRA. Distributions are tax free if used for qualified medical expenses.

See a tax advisor or check with a local insurance professional for advice.

Answer 2

Listen the problem is that when ever a politician tries to tackle this issue, everyone doesn't think its as big a problem as Jesus or War. Why do you think so many people are uninsured?! And your tax dollars pay for them too - instead of schools or law enforcement. Health is a huge issue in the US. Why aren't we tearing down walls to have it heard. Remember when we elliminated the deficit and had a surplus? Remember when we were talking about Universal Healthcare - (we're the only western country to not have it and one out of a fistful of third world countries that don't have it). It would solve the social security issue - (by bringing Medicare into the Universal System) - save employers billions collectively and would have cost us what at the time? Would it have cost 400 Billion dollars? Because that is what has so far been disclosed as the price of bringing democracy in the form of a civil war to Iraq. Just think of how much you have personally benefited by that war when your lying in a state hospital bed dying of a cancer that would have been diagnosed had you not "freely chosen" to forego "affordable health insurance" when you chose to spend $500 a month on living what life you were allowed to live.

Answer 3

One could contact congress and demand that America have what all other civilized nations have - universal health care.

There is simply no room in this system for the billions of dollars that go simply to moving paperwork around. It's an absurdity and a crime. Only in America do middle class people become poor because someone gets ill!

The rates are unaffordable because the Republican congress allowed it and because when any attempt is made to get us a decent health care system, republicans and the insurers they work for put on silly ads like Harry and Louise that persuade americans to act against their own interests.

Call congress tomorrow and ask for national health care!

Answer 4

Well the short answer is government meddling.

The long story starts in the 1960's when they though medicare would be a good idea. It wasn't long and the program was draining the treasury. So law makers started capping payments below cost. So health care providers passed the cost onto paying customers. Driving up cost to insurance companies. Who in turn raised their premiums.

Then our lawmakers tried to combat this by setting up new forms of insurance where providers and insurance companies worked together (HMO's) to pass the cost of the people who didn't pay onto those who do pay.

We will eventually wind up like Canada where people die waiting for government rationed health care. That's what the bureucrats and politicians want to force us into. Otherwise they:

1. Would allow individuals to purchase their own policies and deduct them from their income. Rather than forcing them to buy policies through their employer.
2. Wouldn't force insurance companies to provide certain coverage to all policy holders. Like forcing 90 year old grandmothers to carry pre-natal care.
3. Would put loser pay tort system into place. To stop frivolous lawsuits that drive up the cost of liability insurance for medical providers. Their are several OBGyn doctors that have given up their practice because their liability insurance payments are higher than their income.

Bottom line is normal market forces no longer exist for health care. Most patients are either covered by insurance or are one or another government program where they don't directly pay more medical care. Almost all doctors recieve their payment from third parties either government programs or insurance companies. This creates a horrible arrangement where patients are no longer customers but a comoditiy to be processed.

We are doomed unless people wake up and realize market forces have to be reintroduced into the health care industry.

Food is more important than health care, if we regulated grocery stores the way we do medicine we'd all be starving.

Answer 5

I think you need a new job with better benefits. I am single, but I pay $134/month. Even for a married couple it would be less than half what you pay. My deductible is like $500

And I used to have better insurance at past place I worked, but it was a larger company... I made less, though...

I'm just in MN, maybe you should move here. Maybe you just need a job with better benefits!

Answer 6

The "top" to wellness care insurance, a house, food, etc. which the Progressives declare isn't coated by using the form yet replaced into defined in FDR's "2nd bill of Rights" whose "inalienable rights" from our "author" isn't God, however the federal government, which makes Obama "Jesus", i think... meanwhile, as nicely reducing Medicare to "pay for it" they are additionally reducing Tri-care and all and sundry of the different federal wellness classes human beings count on... even nursing residing house care! (source is the AP)

Answer 7

the first step to reduce health costs is with tort reform - lawsuits have driven the doctor's costs beyond belief.
the second step is to allow more doctors to immigrate and offer free education to students in the medical field providing they work at a rational set salary for "X" number of years in the community that provided the education.
the next step is to have a free market (non government interference) in insurance. Allowing nurse practioners, and other non traditional medical practices some entry into the market.
caveat empor (sic? no spell check in latin)