Health Insurance as Employee Benefit

[LisaH]

DH worked for Cisco for many years and when he retired a couple years ago he got Cisco’s retirement plan after his COBRA expired. The premium is about the same as ACA but coverage is much better. He decided to get out of retirement recently and went back to work for another major Silicon Valley company. Even though we are enrolled in the new insurance plan, we still keep our vision plan from Cisco just so when he finally retires (hopefully soon), we can go back to Cisco’s plan. Once we drop out, we can no longer enroll.

 

[CalGalTraveler]

@VacationForever Sorry for the confusion. It is AB5. It has made national news. They say that other states will follow. Problem is that many of the exception provisions were written so hastily that there are gaping holes such as bookkeepers who don't have a CPA, wine industry, music industry, real-estate appraisers, Ebay sellers may be classified as Ebay employees, independent lab technicians etc. You can see who holds sway with the elected officials based on the exemptions e.g. doctors (AMA) and exotic dancers (!)

The law was originally delayed because the state realized that they would have to put independents that work in state agencies on the payroll costing the state a fortune. LoL...how ironic is that?

To make things worse. Uber has stated that they will ignore the law and they are whom the law was originally targeted.

https://www.latimes.com/california/...-employees0independent-contractors-california

What the Calif legislature doesn't realize is that this creates an incentive to hire fewer workers in state with limited hours to avoid paying benefits, and more workers from out of state. IMO...they are trying to drive a nail with a sledgehammer.

 

[heathpack]

My health insurance is paid 100% by my employer and I have the opportunity to buy it at a reasonable cost for my spouse.

However, high-deductible HSA-eligible plans are the only options. I picked a PPO version that has a $5000 deductible and max out-of-pocket per family of $7350 per year.

When I had my recent bike crash, my hospital bill alone was $42,000 (excluding the various doctor's fees), so this year I'll be out the full $7350 from my HSA. Kind of sucks but that is modern healthcare.

 

[DEScottzz]

That has to be before ACA. All max out of pocket have gone up with higher premiums at the same time.

No, it was after ACA had been in place. I had retiree coverage from the same company until a year ago, and my wife still has it. The big companies all self-insure, and the cost to them of adhering to ACA requirements (like letting kids stay on the coverage until age 26) aren't too costly.

BTW, my wife also worked for a Fortune 500 company. Her company offered very similar coverage, but my company was a bit better, so we went that way.

 

[klpca]

My health insurance is paid 100% by my employer and I have the opportunity to buy it at a reasonable cost for my spouse.

However, high-deductible HSA-eligible plans are the only options. I picked a PPO version that has a $5000 deductible and max out-of-pocket per family of $7350 per year.

When I had my recent bike crash, my hospital bill alone was $42,000 (excluding the various doctor's fees), so this year I'll be out the full $7350 from my HSA. Kind of sucks but that is modern healthcare.

Bike crash? I hope that you are ok.

 

[klpca]

Wow. That's crazy. I know that in our personal situation the amount reported on our W2 by my husband's employer has been in the 20-22k range for as long as I can remember, but of course that info wasn't reported before 2008ish.

Btw, I double checked my husband's 2018 W2 and the amount in box DD (employer+employee insurance cost) was actually only $11,500 for Kaiser HMO for the two of us with a very low maximum out of pocket, and low co-pays - so comparable to a gold plan on the Covered Ca exchange. Now I am really mad about the change in our coverage. What could they have possibly found that was cheaper?

 

[klpca]

I love this story. My father was born in 1931. My grandparents were immigrants from Germany had truly had no money at that time. My grandfather bartered with the doctor and did carpentry work for the doc as payment for delivering my father.

My grandfather sold his clarinet to pay the doctor when my mom was born in the late 1930's. Family lore!

 

[heathpack]

Bike crash? I hope that you are ok.

Yeah mostly better now. I had a concussion and rib fracture. Now I’m just fat and slow.

 

[bluehende]

My personal premium (California) went from about $235 a month to $600 now. Our employees are in a range based on age. If our people can get insurance via a spouse, we give them a little extra in their check since we don't have to pay it.

That means your share went up 3 times. It does not mean your insurance went up 3x. That is on your company much m ore than the ACA.

 

[mdurette]

The only person I have ever come across with 100% paid family health is union and works for a big telephone company.

Personally my share of a family plan through my employer is about $6,500/year. It is a high deductible HMO plan. $2000 deductible per year, but my employer will reimburse the first $1000.

DH is union and works for a municipality. They only offer a PPO, which of course is more money. I would cost us over $11,000 per year to go with his. We will switch over to it in a few years as he can carry the insurance post retirement.

 

[joestein]

My wife recently started working at UBS. We pay over $11K for medical coverage for a family of 4. That includes a $3K premium because I have access to health insurance at my job (really crappy and expensive).

However, the insurance has a $3500 deductible and we don't get any benefits, even prescription benefits until we spend that amount. At her last job, we had a higher deductible, but prescriptions weren't subject to the deducible.

As my daughters monthly medication costs over $400, we hit it pretty quickly.

So that means that we are spending a minimum of $15K a year on medical, but probably much more than that. We still pay after hitting the deductible, just not 100%. Thankfully, we can afford it, but I am sure there are many families that can not.

That is why we need a single payer system in this country, like Medicare for all.

 

[VacationForever]

That is why we need a single payer system in this country, like Medicare for all.

... and how do we pay for it?

I will like Medicare negotiated premiums for all. In other words, before one reaches 65, say, at 62...., we can buy into the system and it does not cost Medicare a dime more. Instead of paying $1500 per month in premium as dictated by the insurance company in the private market, it may be $900 per month, negotiated by Medicare with similar negotiated rate to pay doctors. If I can be king for a day...

 

[bogey21]

That is why we need a single payer system in this country, like Medicare for all.

Be careful what you wish for. Medicare is no free lunch...

George

 

[joestein]

If we had free Medicare::::

Employers would save money on employee health care.
Employees would save money on their portion of health care.
Plus there is a huge systematic cost for non-covered people who go to the hospital for a cough or other non-surgical or non-emergency care, which no one ever seems to discuss.


This would have to be offset by a large increase in the Medicare portion of payroll tax. (I would assume still matched by employer).
Union people or others who pay no portion of their insurance would hate this. So would small business that don't provide any health insurance.
The question is how much would the additional Medicare tax be vs. the savings on health insurance. Not really sure. There would definitely be some losers and winners when it came to net cost.

However, anyone who needs medical care could get it without worry about the cost.

 

[Sugarcubesea]

Been awhile since I was employed full time. Wondering what companies provide today.
I would expect a company to provide health insurance to employee at no cost. What are they doing in regard to family coverage? Does employee share the cost?

The days of a company providing insurance to employees at no cost are long gone. My company pays 90% of the cost and only aks the employees to pay 10%, which is considered a very healthy and great deal in my industry

 

[rapmarks]

If we had free Medicare::::

Employers would save money on employee health care.
Employees would save money on their portion of health care.
Plus there is a huge systematic cost for non-covered people who go to the hospital for a cough or other non-surgical or non-emergency care, which no one ever seems to discuss.


This would have to be offset by a large increase in the Medicare portion of payroll tax. (I would assume still matched by employer).
Union people or others who pay no portion of their insurance would hate this. So would small business that don't provide any health insurance.
The question is how much would the additional Medicare tax be vs. the savings on health insurance. Not really sure. There would definitely be some losers and winners when it came to net cost.

However, anyone who needs medical care could get it without worry about the cost.

It seems so radical when they mention it, but something has to be done.

 

[rapmarks]

Right now we get our health insurance through the state retirement, but we pay for it. Also every working teacher in the state constributes two percent or more of their salary not for their current insurance but to be able to buy this insurance when they retire. But the state wants to stop this program. Right now the courts are not allowing it, but it is something to worry about. Of course this is happening at a stage in our lives when we really need and use the insurance

 

[CalGalTraveler]

I am wary of medicare for all because there will be too much cost.

I am in favor of the government lowering the Medicare age to 55 since so many people are getting laid off and losing affordable medical coverage by then.

Perhaps they should rescind those broadbase corporate tax cuts they handed out and redirect the rescinded tax savings by only giving them to companies for paying directly for full employee medical care and contributing to a medicare pool instead of stock buybacks and CEO salaries which only enrich the executives. I am not a govt policy wonk but it seems that there are solutions here.

 

[bluehende]

The problem is the high cost of medical care in this country. Other countries pay about half and in general their outcomes are better. Imagine what this country could build with saving half what we spend on health care. The only way at this point I see to save considerable money is for a single payer system. Getting rid of the middle man and the extreme negotiating power would save us a lot of money. Unfortunately like everything these days it has become a political football with the people in power being more intent on using the problem to punish the other side than looking into real ways to lower our costs. If we do not do something we will bankrupt this country as that is one of the main drivers in the federal budget.

 

[joestein]

I am wary of medicare for all because there will be too much cost.

I am in favor of the government lowering the Medicare age to 55 since so many people are getting laid off and losing affordable medical coverage by then.

Perhaps they should rescind those broadbase corporate tax cuts they handed out and redirect the rescinded tax savings by only giving them to companies for paying directly for full employee medical care and contributing to a medicare pool instead of stock buybacks and CEO salaries which only enrich the executives. I am not a govt policy wonk but it seems that there are solutions here.

Not a bad idea. Of course, easier said than done.

 

[joestein]

The problem is the high cost of medical care in this country. Other countries pay about half and in general their outcomes are better. Imagine what this country could build with saving half what we spend on health care. The only way at this point I see to save considerable money is for a single payer system. Getting rid of the middle man and the extreme negotiating power would save us a lot of money. Unfortunately like everything these days it has become a political football with the people in power being more intent on using the problem to punish the other side than looking into real ways to lower our costs. If we do not do something we will bankrupt this country as that is one of the main drivers in the federal budget.

I think it is much more than just a political football. The health insurance and pharmaceutical industries spend 10s of millions annually through lobbyists and contributions. They own both sides. Even though it would be great to cut them out, I don't think it will ever happen. However, we can always dream.

 

[Brett]

I think it is much more than just a political football. The health insurance and pharmaceutical industries spend 10s of millions annually through lobbyists and contributions. They own both sides. Even though it would be great to cut them out, I don't think it will ever happen. However, we can always dream.

hospitals, doctors, pharma, insurance companies, - they all pass along a big chunk of our inflated health costs.
I'd be in favor of a plan to buy in to medicare before age 65 but I don't see that happening anytime soon.

 

[bogey21]

A number of years ago when my Primary Care Physician retired I had to find a new one. When I started inquiring I found that many, if not most, Primary Care Physicians were either not taking Medicare Patients or were not taking any new Medicare Patients. It obviously had to do with the reimbursement rate Medicare pays. The question I pose is where do all the new patients find Doctors if we go to Medicare for All or lower the age for Medicare to 55....

George

 

[Luanne]

A number of years ago when my Primary Care Physician retired I had to find a new one. When I started inquiring I found that many, if not most, Primary Care Physicians were either not taking Medicare Patients or were not taking any new Medicare Patients. It obviously had to do with the reimbursement rate Medicare pays. The question I pose is where do all the new patients find Doctors if we go to Medicare for All or lower the age for Medicare to 55....

George

When we moved to New Mexico we not only had to find a new doctor, but also one who accepted Medicare. Luckily a doctor that was referred to us by a friend takes everyone. I also needed an OB/GYN. I was told the one I wanted to do to wasn't taking new Medicare patients. I wasn't quite of Medicare age yet so I asked if I was already a patient would they continue to see me after I reached 65. I was told yes. So I made my first appointment with her one month before my 65th birthday and became an established patient. She still sees me.

 

[CalGalTraveler]

A number of years ago when my Primary Care Physician retired I had to find a new one. When I started inquiring I found that many, if not most, Primary Care Physicians were either not taking Medicare Patients or were not taking any new Medicare Patients. It obviously had to do with the reimbursement rate Medicare pays. The question I pose is where do all the new patients find Doctors if we go to Medicare for all or lower the age for Medicare to 55....

George

Great question. I was told by someone knowledgeable of the industry that employer plans pay 110% while medicare pays 90% to healthcare and that's why medicare for all won't work.

I had a 70 YO friend who received a bill for late stage cancer treatments and surgery with 8 weeks in the hospital due to complications (she's on the mend now). The gross bill was around $450,000. Medicare authorized about $100k as I recall. Her copay in the end was less than $2000 and she didn't have medigap insurance.

I can see why people with poor or no insurance coverage claim bankruptcy.