Health Insurance Costs
As I've just finished my first week at work I'm in the mode of selecting insurance policies and the like. Looking into my options I find that they are different than I've had in the past.
The good news is that my new employer pays 100% of my premiums. Considering that I was used to paying $596/per pay period at my old employer, this is a savings of $14k annually.
The down side is that they only pay the premiums for me, and if I want to cover James on the same policy it would cost about $550/month, or nearly $7k with dental at another $150 annually.
Given the cost implications for James alone, who has only been to a doctor once in the last five years, this seems like a pretty steep price. Needless to say, we are looking to see what his options would be to get a student plan up at the University. This would cover him basically under emergency situations and certainly be a great deal cheaper.
With the topic fresh on my mind, I can't help but reflect on what a broken system we have in America. Certainly we have good health care options, and for that I am thankful, but prices of this system have really gotten out of control. I sincerely hope that we will be able to modify our health and insurance structure to be beneficial for all Americans. For obviously if insurance coverage is an issue for someone with our relative financial health and excellent overall health, I can only imagine the difficulty for so many others.
For example, my mother has had a series of difficult dental issues over the last number of years. Now as she gets to the final, hopefully, stage of things she has recently gotten implants for four molars that had previously been pulled. The cost has been so expensive, even with insurance, that she had had to take out a loan for the over $10k price tag to fix her teeth. I find it incredible that it will have cost her more money on her recent dentistry than it has for her car. At her salary being a public school teacher it will take her years to pay off her medical care.
Overall it just feels like a very sorry state. Certainly we don't have many of the dire health issues that result in a vast majority of the world, but you can't argue that our system is functioning to the benefit of all.
Best,
Miel
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7 comments:
Yes, you're right, the health industry is messed up. Unfortunately, fixing it is going to be hairy no matter what.
I had to research the topic several years ago when I was a student (I was in debate), and the main source of the problem was "everyone."
The lawyers, politicians, doctors, insurance agents -- everyone in general seemed to be doing something amiss that was messing up costs for everyone down the road. Not a pretty situation. =/
It's a difficult issue which hasn't been resolved anywhere in the world. In Europe, for example, they have single payer, but their system is hardly perfect. In fact, many of us wouldn't be very happy with the same service and rationing as in Europe. Incidentally, as far as I know implants aren't covered in Europe at all.
Shaun said correctly - it's a difficult issue with everyone being responsible for costs in one way or another - ourselves, pharmaceutical companies, doctors, medical schools, lawyers - everyone.
But we also need to put our of pocket costs in perspective at least when we talk about elective procedures. You are surprised, for example, that your mother had to pay more for dental care that included several implants than for her car. But what is more important to your mother - her car or her teeth? What is worth more money to her? What will serve longer - the implants or the car? Why should several implants be cheaper than a car? Putting each of them requires surgery on the bone that can have complications. A single wrong move during the surgery and the nerve can be damaged, especially on bottom teeth. Implants are covered by crowns that are custom made. Not to mention that implants aren't a medical necessity. There are cheaper ways to fix the teeth - bridges or dentures. Not as convenient, but solve the main medical issue.
I think when we look at medical bills, we should think about these questions. Certainly, most of us couldn't afford truly serious problems like cancer treatment or any less serious condition that requires long term expensive medications. But when we talk about the amounts that are similar to what we pay for things we buy, we should really think in term of relative importance to us.
OMG, what coverage you had at your previous job? Over a $1000 per month on premiums? Did it have something to do with the fact that you were abroad?
Penko - Yes, there are only limited insurances that you can get when living abroad. Most don't offer very good coverage. This one still had me pay $300 for an appointment that previously I had just paid my co-pay. But living in Afghanistan isn't a place you want to be out of coverage, because no one is going to save you there.
Miel
If your husband is young and healthy, you might be better off avoiding the student plan and looking to an individually underwritten plan.
1. If you are a good risk, group plans are bad deals;
2. A high deductible plan (possibly with an HSA) might be the right plan for your family. It protects you from a catastrophe, but does not "price in" routine care. (If he gets subsidized care at the school's health center, this might be an even better deal)
Finance Guy is on the right track with looking at a high deductible plan with an HSA. I pay about $175 a month with Blue Cross/Blue Shield that has a $2,200 deductible.
There is one other benefit of having an HSA. You receive a tax deduction by contributing to it (up to $3,000 as an individual for 2009). You aren't required to use the HSA to cover your deductible, but rather you can invest it for use many years in the future to pay for qualified health expenses. Right now we use my HSA as another tax free savings plan, instead of using it to pay the deductible if needed.
Kitty - I think you bring up some very good points. It is hard to put a price on good health care. I don't know all of the solutions to things, but think we definitely need a solution.
I just wish the process was a bit more transparent. As it is you just don't know where you stand most of the time. Even if you do have coverage you never know how good it will be fore certain things until you have to deal with something.
Best,
Miel
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