Healthcare reform's unlikely ally: big business

LA Times ^ | 5/7/2007 | Jordan Rau

[CertainInalienableRights]

Why stop offering it if they still have to pay for it? That makes no sense.

They want to reduce their costs, not keep their costs up

Generally speaking, the high costs of insurance for companies is not because of the healthy single people, but by the chronically sick and those with families.

If they don't make up for the difference, then the competition who does offer health insurance will hire away all the employees. However, for most people, the compensation required to obtain their own health insurance, and thus retain the employee, is far less than that employees fractional share of the corporate health insurance policy.

At my small company of 20 people, our premiums are double because of two individuals - one lady has a sick child that requires ongoing surgery, and another has a chronically ill wife. The rest of us, and the company, are all paying extra for that.

Furthermore, while many companies are having trouble paying health care costs, the real issue is that the premiums are unpredictable, other than that they will go up. Companies can deal with high costs that are stable, but when the premiums are hiked significantly every 3-5 years, budgeting becomes difficult, and then most companies spend more money trying to find a different insurance company every 3-5 years, which adds cost on top of the premiums. Then you add the cost most employers incur of dedicated employees to help the staff sort out the paperwork and regulations to deal with the insurance company, and there are quite a few costs that can be reduced by simply giving the employee an equivalent cash compensation.

[dfwgator]

Then you add the cost most employers incur of dedicated employees to help the staff sort out the paperwork and regulations to deal with the insurance company, and there are quite a few costs that can be reduced by simply giving the employee an equivalent cash compensation.

Offshoring can also reduce those costs. Don't have to worry about paying for somebody's healthcare in Bangalore.

[cherry]

"There is no reason why any of these companies should have been responsible for paying medical insurance premiums for their employees in the first place."

the same to be said about civil service?........

[Wiseghy]

Of course, the “solution” being offered in CA and MA will solve none of those problems. In fact it could make them much worse by requiring even more reporting and mandating minimum level of benefits that would discourage cost containment.

Note that while it is less interesting than providing “great benefits”, you are allowed to pay your employees up to 5k per year in tax free cash income through a Health Saving Account plan. I’ve saved about 40% since switching to one.

Hopefully, such a plan is offered at a competitive rate in your state.

[Ghost of Philip Marlowe]

It’s not an unlikely ally among Corporate Socialists.

Some companies, not all, profit by colluding with the government not only to hand over some of its overhead (healthcare, originally used to attract talent) but also in disseminating the PC doctrine the government requires/encourages (sensitivity training, etc.). They’ll also collude with governments to eliminate competition and form monopolies.

All economic systems have their dark side. This is part of the dark side of Capitalism.

[CertainInalienableRights]

Hopefully, such a plan is offered at a competitive rate in your state

An HSA, combined with some sort of catastrophic-level care insurance, would be perfect for me.

I don't go to the doctor unless I injure myself and I'm not on prescription medications.

Actually, with an HSA, I'd probably visit the doctor more.

I'm curious how the HSA's work in terms of payment - I assume that the government somehow monitors that you spend only on medical expenses. Do you get a special checkbook just for medical purposes, or do you have to declare everything to the IRS? Will physicians give you a discount for paying by cash (out of the HSA) generally?

[Malacoda]

The problem is, while people like you and me would actually use the money to pay for our own insurance, the majority of dumb@sses out there would see it as an opportunity to buy a plasma TV --"Hey, I ain't never gonna get sick! I'm perfectly healthy!" -- and then clog up the system looking for "free" care once they'd blown the mney and had no insurance.

We'd all end up payig for them, anyway.

[hunter112]

Agreed, the only workable long term solution is one that cuts the lawyers out of the deal. Of course, we have to wait until we have a Republican Congress along with a Republican President to effectuate this. Silky Pony ain’t gonna propose it!

[sono]

Hey ... You never know. After all, as the famous Vulcan expression went, Only Nixon could go to China.

[hunter112]

I loved that line! Live long and prosper!

[Wiseghy]

An HSA bank account is just a specialized, designated personal checking account. Most banks give you a checkbook and a debit card. You are the only one responsible to making sure your expenses qualify. Audit is the only way this is enforced.

Usually, the best discount you can get is from the healthplan you are enrolled with (which you must have in order to qualify to open an HSA), in most cases about 30% to 40%. The doctor has to file a claim to find out the proper rate to bill you for.

Often, doctors do have special cash only discounts which may exceed those negotiated by insurers, if you ask about it and don’t ask them to file any paperwork with your insurance company.

Easist way to save is by shopping your prescriptions on-line and splitting pills.

[darkangel82]

Hopefully never.