Friday, October 19, 2012

My Healthcare Plan

They’re changing my healthcare plan at work. Like all changes there are some plusses and some minuses but overall I don’t have a problem with the new options.

That’s not what I want to talk about. What I want to talk about are how the premiums are allocated.

There are three basic options in ascending order of cost, employee only, employee plus spouse (or domestic partner) and employee plus family.

There are no variations based upon age or number of children and the coverage is exactly the same for everyone. Therefore the young are most likely subsidizing the costs of the old and smaller families are subsidizing the cost for larger families. Yet, I don’t hear anyone complaining.

There’s another premium wrinkle. The coverage is precisely the same for everyone but the premiums you pay are dependent upon your salary. There are six salary brackets. For an employee plus spouse, the lowest bracket premium is $156 a month. The premium for the highest bracket is $428 a month.

This means that the higher paid individuals are subsidizing the health care insurance for the lower paid individuals. Yet, again, I don’t hear anyone complaining.

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