And the hits keep comin’ and they don’t stop comin’. Honestly, what’s the point of paying for health insurance anymore? We already pay for a ridiculously expensive surgery every year in premiums alone. So, why have it at all?
And we’ll pay even more in the next couple of years.
Stamford Advocate reports that premiums will rise by 35 percent or more by 2021. Meaning, health care companies will effectively expunge all traces of the word “affordable.” Although, it feels like it already.
And, possibly, more people will opt out of coverage since it’ll become cheaper to remain uninsured. It all comes down to basic math.
More people think they save a lot more money opting out of health insurance anyway. A broken arm typically costs $2,500.
So, if an insured person pays $5,000 a year for health insurance and unexpectedly breaks an arm, they still lose $2,500 regardless. Maybe more considering deductibles and copays. So, the amount they put into their insurance far outweighed their cost of care.
It’s incredibly imbalanced.
And because of that, people simply figure it’s more cost efficient to risk opting out of health insurance.
And, quite frankly, not everyone goes to the doctors anymore. 9 out of 10 millennials actively avoid going to the doctor because of the high cost of healthcare already.
When people feel health insurance doesn’t actively save them money anymore, there’s a problem. Also, many feel the amount they pay for their premiums is more than the costs of basic care.
Simply put: health insurance no longer operates as risk management. It’s extortion.
Anyways, back to Connecticut’s health insurance premiums.
35 percent seems like a cakewalk compared to other state numbers. For example: New Jersey might see prices jump by a whopping 90 percent.
So, where did these numbers come from?
The study originated from the group called Covered California. They based their findings on average inflation of medical costs and paired it with the rate of uninsured healthy people.
You know, when more healthy young people buy health insurance, it drives down insurance costs. Simply put: it’s because they cost less.
But, unhealthy people or those with preexisting conditions are far more expensive. When more of them buy into an insurance plan than healthy people, their insurance needs to jack up premiums in order to cover their costs.
Here’s an example. You qualify for your work’s insurance and consider enrolling because of the nifty benefits. However, you see the premiums and wonder why you’d have to pay $500 a month just to stay covered. Then, you find out over 70 percent of your coworkers smoke.
So, you switch jobs and qualify for your new job’s health insurance. Their employee base also skews younger and less than 5 percent of your new coworkers smoke. Naturally, your work’s health insurance premiums are $100 a month.
So, that’s why our lawmakers want to enforce their own individual mandate law to keep costs low. They want to force healthy people to find coverage to offset the costs of unhealthy policyholders.
But it’s still not enough. If the penalty costs less than a full year’s coverage, then people will simply pay the penalty.
Long story short: our healthcare is a mess and it’s only going to get worse.
Do you think it’s still worth it to have health insurance or have the premiums made healthcare simply too unaffordable?