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RallyCry (< 20)

Who is Getting Rewarded in Today's America?

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November 13, 2012 – Comments (9)

Just got done reviewing open enrollment info on my latest health insurance premiums at work for 2013. 20% increase expected for the HMO option I have used the last several years. I went back and figured in the 5 years with my employer, I have earned an average of 6% salary increases while my average yearly increase in health insurance costs over this 5 year period is 138.17%. 2008 and 2009 were particularly bad and skews the average up with a 416.67% increase and 225.81% increase respectively, but hey when that paycheck is cut, every dollar still counts! The most current two years of increases (2012) 25.51% and (2013) 20.33% seem tame in comparison. However, it still burns me that my health insurance cost is growing over 3 times the rate of my wages. If that trend continues in 10 years my health insurance will grow from 5.69% of my salary to 17.38% of my salary assuming I can still get 6% increases each year (which is no guarantee). This also assumes I will still have individual coverage which is very unlikely since I am 29 years old and that I don't get laid off which could happen too. I feel bad for married people with children have even less disposible income to provide and are facing the same reality. This is crazy! 

9 Comments – Post Your Own

#1) On November 13, 2012 at 9:48 AM, Costanzawallet (< 20) wrote:

I feel your pain. IMO, The only way I see costs going down is a single payer system to remove health care costs from employment and remove the 30% administration rate from private insurers. Also, if every working person had to contribute imagine the incredible group bargaining power to drive costs down. Whatever taxes would be required would pale in comparison to the onerous costs that we pay now for private insurance. Can all our other civilized allies be wrong? Just my opinion.

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#2) On November 13, 2012 at 11:20 AM, Mega (99.96) wrote:

If you are a healthy 29 year old you should probably check out HDHP + HSA plans. Even if it's not through your employer.

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#3) On November 13, 2012 at 11:32 AM, RallyCry (< 20) wrote:

There needs to be a strong organized effort by Americans to fix this. If you think about the U.S economy as a series of transfer payments going from one group of people to another, where is the biggest imbalance of transfers taking place in healthcare? Is it fraud (from gov't to citizens or from gov't to doctors) lawsuits (insurance companies to citizens), insurance premiums (doctors to insurance companies or from citizens to insurance companies) ....all of the above? Maybe you cap every single transfer category or try to impose targets among them so the buck doesn't keep getting passed onto the people. Americans don't have any mechanism to pass the cost onto someone else. They need intervention so they can at least have some say on to whom and how much they pay.

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#4) On November 13, 2012 at 12:22 PM, RallyCry (< 20) wrote:

Hey Mega, thanks for the tip. It looks like the HDHP is a $2,500 deductible for an individual plus $120 in premiums for 2013. The one good thing there is the company puts $1,000 in an HSA for you so by my calculations i'm weighing  $1776 + copays on the HMO side vs. $1,620 plus no copays on the HDHP + HSA side so maybe you are onto something. I'm assuming here that I would hit my $2,500 deductible if I used the HDHP + HSA.

The only thing that might complicate this situation is considering after tax dollars vs. pre-tax dollars and the appropriate amount to put into the HSA which is probably at least $1,500 to match the $1,000 the company puts in to meet the $2,500 HDHP deductible.

I get the feeling you need an MBA in accounting and health care administration to figure this all out.

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#5) On November 13, 2012 at 2:40 PM, PeteysTired (< 20) wrote:

 RallyCry

There are no easy answers.  Insurance is moving everyone to high deductable plans with HSAs.  The gov't has their hands in all of it.  My favorite inflationary move is the Fed gov't reimbusing (i think) $2 for every $1 spent by the states for Medicade.....talk about a path to insolvency...uhg.

I think it will help if we can move everyone to individual plans.  The trick is caring for people in the the few months of life or who have serious long lasting issues.

It is always funny how you hear reports of how Medicare wants to cap or reduce payments to Dr.....wow do we hear the "why would anyone go to medical school" arguement.

No easy answers I guess that is why some healthy people roll the dice and opt out and if you already have a pre-existing condition why pay into the system.   

 

 

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#6) On November 13, 2012 at 2:46 PM, kthor (70.21) wrote:

it's a simple Obamanomics !

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#7) On November 13, 2012 at 8:54 PM, WarminBuffet (< 20) wrote:

It is because the government is supporting anticompetitive measures in the health care industry.  As usual, the government is to blame for the problem.  It cost about $1,000 in today's money in the 50s to have a child, including 3 days of staying in the hospital.  Today, that cost has balooned to about $7,000.  I'm getting ready to take it in the teeth yet again with my third kid. 

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#8) On November 13, 2012 at 9:05 PM, MoneyWorksforMe (< 20) wrote:

To answer the question you pose in your title: The "priviledged" minority at the expense of the exploited majority--that's who.

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#9) On November 14, 2012 at 1:23 PM, RallyCry (< 20) wrote:

I hope the feeling of exploitation can serve as a catalyst for change. This issue effects everyone and it seems that multiple entities need to be placed under the microscope. Maybe I'll set up a 503(c)(4) non-profit and try to do my part. It seems to me it would take the structure of an unlimited donation entity to push for meaningful reform. 30% administration fees...$2 for $1 federal medicare reimbursement rates....anti-competitive practices...Where to start?  

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