Posted on 03/16/2010 10:30:52 AM PDT by Andrea19
America’s healthcare system is so complex it needs its own dictionary just to define the verbose terminology. So how did it get this way? More specifically, why did we start obtaining health insurance through our employers instead of directly purchasing it on our own?....
(Excerpt) Read more at americanshareholders.org ...
It's also worth noting that the Knights of Columbus was originally started as a life insurance company. Same concept . . . pool enough people together and the costs for those with the greatest needs are diminished.
The big difference is that the company car is a taxable benefit to you — and the medical insurance is not.
I agree.
Same thing. Either way it’s a group plan.
Sure you can from anybody licensed by your state to sell it.
Agreed. Though I am peeved at Aetna right now. They were my insurance company at my former employer and COBRA, so I applied to pay for individual and was DENIED! Oy. Crazy stuff. Someone else will love my money.
We also have insurance provided by hubby’s employer. We pay I think $8 a week to cover me. We also consider it a big reason Dh has stayed there for 32 years and will continue with them for as long as possible.
Ping
There's some benefit to having some measure of control over the pool you belong to.
Why legislate it? Why not let the market rule? Select a plan that covers catastrophic-only claims. Form public pools and buy group coverage for members. Opt out of employer-provided care and use the money for your own plan.
There are always alternatives to more government intrusion.
It is my understanding that it came about because of wage controls imposed by Congress as a means of attracting and retaining qualified workers.
This is one point the article has wrong. It was actually started in the 30’s when the IRS issued a ruling that stated that health insurance wasn’t income. Therefore, an employer could attract workers without paying out as much in salaries.
And that became the start of funny-money health costs. Given the deals that insurance companies broker with doctors and hospitals, I nearly willing to bet that NO ONE knows the real cost of any given health care procedure.
The market isn’t ruling now, that’s my point. Reducing regulation might help in that.
However, I find it curious that this issue is on the forefront today and suspect that it is just a part of the continued assault on the private sector. If this long standing practice changes who will benefit? Certainly not the employee and definitely not the employer, only the goverment will come out ahead. If everyone buys their own insurance the employers will need to compensate the employees for the value of the lost benefit in their wages. That increased pay will be taxed as part of both the employees and employers contribution to payroll tax. Essentially this leaves the employee with less after tax dollars then he needs and the employer with higher after tax expenses. The government will once again take more cash out of the private sector.
Now the employee buys his own policy with his remaining after tax cash at a price which may or may not be negotiated for him through a group.
Under this system the advocates will say he gets to keep this policy even if he loses his job. The reality is if he has no job he can't pay for it and will lose it.
No, I was referring to employer-provided insurance. Usually they offer one plan, or a choice between a couple of plans, but they won’t buy you just any policy that you want.
Netxt, the liberals will deamnd employers pay or electric bill or buy us a car or ensure we have shoes.
Employers do what they should and that is pay us.
It was started by private enterprise during WWII to attract good workers.”
Exactly.
I worked from age 16 to about age 35 for employers where I was on payroll. I don’t think I had health insurance in even half of those jobs. Companies were too small.
I have been self employed for over 35 years. Paid for my own health insurance.
Which is the direction we should be heading in. Once employers dump coverage, the market will better reflect what individuals can pay for their own insurance. Not everbody will be able to afford the same level their employer paid for, but not everybody gets to drive a BMW either.
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