Comments on: Why do individuals pay so much more for health insurance? http://smallbusinessgrouphealthinsurances.com/260 Sat, 02 Jul 2011 14:18:02 +0000 hourly 1 By: jlf http://smallbusinessgrouphealthinsurances.com/260#comment-556 jlf Tue, 13 Jul 2010 13:28:38 +0000 http://smallbusinessgrouphealthinsurances.com/260#comment-556 That is part of the debate going on now. If your employer provides a group plan, they generally get a "group discount" from the insurer, plus the employer usually pays a portion of the employee's premium, so the employee is not directly funding the full cost of the insurance. That is part of the debate going on now. If your employer provides a group plan, they generally get a "group discount" from the insurer, plus the employer usually pays a portion of the employee's premium, so the employee is not directly funding the full cost of the insurance.

]]> By: mbrcatz http://smallbusinessgrouphealthinsurances.com/260#comment-555 mbrcatz Sat, 10 Jul 2010 05:09:31 +0000 http://smallbusinessgrouphealthinsurances.com/260#comment-555 Because health insurance is one of those insurances, where pretty much EVERYONE files claims EVERY YEAR. On average, we spend about $8,000 per person, every single man, woman, and child, in the USA. If people filed as many car accident claims as they did health claims, car insurance would be that much. If friend has insurance through her employer, the employer is picking up a large chunk of the tab - on group plans, employers usually pay at least HALF the cost. The reason your discount group rate thing won't work, is called 'adverse selection' - the only people who would JOIN your group, are the people who can't get cheaper insurance on their own. If, for example, I could get insurance for $200 a month, why would I join your group and pay $350? If your group rate averages out to $350, the only people who would join, would be ones who are paying more than $350. Then the group rate would jump up to $500. Would YOU join a group where the average rate was $800 a month? No, because it's cheaper on your own. Those self groups, are nothing except huge spirals upwards, of sicker and sicker people. Sorry. It was done about 20 years ago, and that's what happened. Because health insurance is one of those insurances, where pretty much EVERYONE files claims EVERY YEAR. On average, we spend about $8,000 per person, every single man, woman, and child, in the USA.

If people filed as many car accident claims as they did health claims, car insurance would be that much.

If friend has insurance through her employer, the employer is picking up a large chunk of the tab – on group plans, employers usually pay at least HALF the cost.

The reason your discount group rate thing won't work, is called 'adverse selection' – the only people who would JOIN your group, are the people who can't get cheaper insurance on their own. If, for example, I could get insurance for $200 a month, why would I join your group and pay $350? If your group rate averages out to $350, the only people who would join, would be ones who are paying more than $350. Then the group rate would jump up to $500. Would YOU join a group where the average rate was $800 a month? No, because it's cheaper on your own.

Those self groups, are nothing except huge spirals upwards, of sicker and sicker people. Sorry. It was done about 20 years ago, and that's what happened.

]]> By: Kate http://smallbusinessgrouphealthinsurances.com/260#comment-554 Kate Wed, 07 Jul 2010 10:40:04 +0000 http://smallbusinessgrouphealthinsurances.com/260#comment-554 Start an insurance company. Start an insurance company.

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