Tuesday, September 27, 2011

Health Insurance Now Cost MORE Than a New Car - Every Year!!

"Health Insurance Costs More Than a New Car" is certainly a Drudge worthy headline.  He has a eye for the grabber headline that yields massive click-thrus.  And this one sure caught my eye.

But in this case the click through from Drudge leads you to an honest to goodness news story in POLITCO (not even an op-ed piece).  But it's still a scary story.  Family Health Insurance for the average family in America now exceeds $15,000.00 a year.  That's more than the cost of a new Ford Fiesta. Every single year!

You could have a Jay Leno sized garage full of cars in just a few short years if you simply stopped buying Health Insurance!!

How can this possibly happen?  The key is that the average American doesn't realize how much he is being charged.  His or her costs are partially paid by the employer and the balance is split up by paycheck, between 24 and 52 payments a year, so they seem smaller than they actually are.

The POLITICO article goes out of its way to make certain readers know that OBAMACARE (or the Affordable Care Act) is NOT the reason for these huge premiums, it's mostly actual increases in healthcare costs.  In fact the POLITICO article points out that Obamacare may hold back future cost increases.

But this is reality and the article makes clear that these costs are increasing much faster than the rate of inflation.  I believe the so-called Affordable Care Act is not part of any solution.  I'm sorry the bill became so politically charged that real compromise was never even considered.  Republicans and Democrats share the blame equally.  Although I feel Nancy Pelosi was primary the architect of this fiasco.

Market forces could reduce these costs, but only once the actual payer, the patient or the employee, understands how much he is really paying.  Our system of employer paid health insurance hides the real costs from the insured, while forcing the uninsured into certain bankruptcy.


marksky said...

The month after Obamacare was passed my BXBS PPO Insurance plan went from $600/mo to $675. I received a letter basically saying it was due to new government mandates. I'm self employed, been paying BXBS for this plan since 1991, and was feel like the insurance companies have used Obamacare as a license to steal!

marksky said...

Bob you sound like a Ron Paul conservative to me. Ron Paul 2012.