There is an interesting article on IFAwebnews that talks about health reform from a doctor's perspective. Bob Graham did a great job putting it together.
A couple good points were made in the Article. The truth is everyone knows that an insurance company won't pay for a car accident if you didn't have insurance at the time of the loss or accident. The American public accepts this as fact, at least most of them. In fact they make fun of it in TV shows and movies about someone trying to buy auto insurance for their car after an accident. What would make you think health insurance could be any different?
In that perspective, you cannot insure a pre-existing. Finacially, it's unaffordable. The article references New Jersey, a guaranteed issue/community rated state like in the ObamaCare program. They are sharing the cost of the pre-existing; premiums will go up. The example given, if you take the average 35 year old, monthly premiums in Colorado they are $204 and in Illinois it's about $180. In New Jersey its about $2,150 per month. If you were making $50,000, in New Jersey, fifty percent of your income would go to health insurance.
I like the term "job lock". Many American’s financially are in a position to retire, but they have several years, or more before Medicare kicks in. The only reason they go to work is to hold on to that health insurance. It's crazy we live in a nation of freedom but we are 'locked' into something. It's almost like falling short of the finish line knowing you are so close.
If you were to buy private insurance, typically the cost savings can be thirty to sixty percent. The unfortunate part is there is a tax incentive to have an employer sponsor a group health insurance. The only way, that I know - I'm not a tax advisor, you can get a tax incentive for buying private health insurance is if you are self-employed. Now, there are reimbursement programs available as a tax incentive and still provide health insurance to employees. This is called Health Reimbursement Arrangement, or known as HRA. This is a different topic all together.
This method keeps employers tied to the cement block but they are still drowning. Many businesses based in the United States pay more in health insurance for their employees than they earn in net profit at the end of the year. It goes back to the saying "there is no free lunch".
Butch Zemar
www.EliteBenefits.net