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Question


Jennife...

Why isn't health insurance a commodity item like other forms of insurance (ex. auto)?

I could essentially have the same provider for car insurance all of my life. Why is health insurance so heavily linked to one's employer? It would much easier so have the same health insurance for years or decades so no worry about pre-existing conditions when changing employers and health plans. With more competition, rates would be lower. Employers could still offer employees some health insurance money to cover premiums as a benefit. I'm not advocating socialized medicine as I don't believe the gov't is very effecient at running any sort of program.

8 months ago - 3 answers

Best Answer

Chosen by Asker

In the past, a long time ago, when income tax rates were more than 70% for the highest income earners, employers put a lot of time and effort into finding the best tax breaks for their employees, because it was an important part of their compensation. Health insurance is one expense nearly everyone has. The employer can justify it as a tax break because healthy employees are more productive. I've had good results here... insurance ... Good Luck.

by Miguel E

8 months ago

Asker's Rating: 

Other Answers

There are carriers that write individual health insurance and you do have the right to purchase your own policy. Your employer, however, isn't obligated to help pay for it. The reason health plans change so much is two fold. First, the health care market place changes so rapidly that plans must adapt to the latest technology and health issues. Second, the government keeps getting involved and that screws it up for everyone.

by fth106- 8 months ago

Well, health insurance IS like auto insurance - you don't HAVE to get it through your employer. The reason it's "linked" is because most employers pick up a hefty chunk of the bill. If your employer picked up the tab for 80% of your car insurance, you'd feel the same way about the car insurance. The problem with competition in the health industry, is that people tend to get sick/develop problems as they get older. The nature of the beast, ya know? So who wants to compete for $600 a month in premium to pay $1200 a month in prescription drugs? It's not a winning business model. Two years ago, the health industry had $7,000 in bills for each man, woman, and child in the US. That works out to over $500 a month, per person, just to BREAK EVEN. The problem isn't the insurance - it's the medical costs, and the preventable issues.

by mbrcatz17- 8 months ago