Insurance RIP OFF!! OLD (large) co.: $318/mo, NEW (small) co. $1158/mo!

[HughMoran]

I'm witnessing first-hand the extremes in cost due to the arbitrary "risk" calculations from the SAME insurance company for the SAME coverage for the SAME insured family. I was laid off from my large company (shipped high-tech engineering job to China - what else is new :eyes: ) and just recently got a job at a small company doing the same kind of work. Everything was going fine until I was given rates for health insurance. The only choice that works for me is to choose the same BCBS PPO (with similar deductibles and coverage) that I had previously (the HMO wouldn't cover my kids in neighboring state (divorced) and I was told it SUCKS anyway.) The old unsubsidized rate from my previous company was $910/mo and the new company total rate is $3000/mo!!! Yes, you heard that correctly,

$3,000/mo or $36,000/year for family coverage

Even after the new company chips in their part, it still ends up @ $6.68/HOUR just for health insurance!!!!! It skims about $14,000 off the top of my yearly pay - this on top of the lower wage I was willing to take at this smaller company. The current system is so incredibly anti-small-business!! Fortunately even the President of this new company is hoping and praying that Obama will get healthcare reform passed. Yes, you heard that correctly, a small-business owner is freaking out that they won't be able to attract decent workers due entirely to insurance rates!

This is outrageous. I'm the same person with the same family & risks (basically none - we're all healthy) and yet based on the size of the company my rate is nearly quadrupled!! If anybody doubts the criminal nature of the insurance racket (yes, it is a racket), you can just think of examples like mine which are playing out all across this country as many workers displaced during the current deep recession find their way back into the workforce. If I wasn't already pissed off at the rich Republican Congressmen that are rich and yet get public funded insurance, now I'm blow-my-top outraged :mad: I'm having trouble containing my anger - somebody talk me down :mad:.

[leftstreet]

1. Hehe, wait til it's mandated n/t

[timeforpeace]

12. The ultimate "be careful what you wish for" is right around the corner.

[AllyCat]

26. Careful! Lots on DU think we are "epic. fail" for saying things like this

even though they are true.

[Gormy Cuss]

2. You're in a smaller pool and therefore represent a higher risk.

At least that would be the official story. What also comes into play is the greater negotiating power of a large employer. Insurance companies want large employers more than small employers. There's just more money in it.

Of course neither of these reasons would matter with a national single payer system.

[truedelphi]

20. If only Obama understood how neat SPUHC would be!

Oh wait a minute - he confesses he does understand.

here...
http://tinyurl.com/l6sxaq

[superduperfarleft]

3. :facepalm:

[Cassandra]

4. Maybe you should talk me down.

The $1000 I pay a month has been subsidizing your lower rates for years and I'm sure I make less than you.

[HughMoran]

5. Are you saying that I'm complaining about nothing and I'm spoiled?

Wow, I had no idea insurance was this bad - I've heard of $1000/month, but I didn't think it was the norm. :(

It really shouldn't cost this much - I think we can agree on that.

[tabatha]

6. It is disgusting. It is highway robbery.

Hope health care passes soon.

[Cassandra]

9. Not at all...

but I wish other people would realize how much the insurance companies are skimming from the productive sectors of the economy.
BTW, I'm in NYS and the mandates do make insurance more expensive, but also, $1000 is for an individual, not a family.

[HughMoran]

10. I was pointing this out by showing how productive small companies can't afford to hire good people

Wasn't I? You made me feel like I was whining by pointing out the nearly 4:1 difference in rates between small/large companies.

[Cassandra]

17. I wasn't trying to make you feel bad...

so much as say that you have discovered something that some of us have been experiencing for a while. If you hadn't had to change to a smaller company, would you have ever known how bad it is for individual purchasers of insurance?

[HughMoran]

18. I've read these stories and it's why I support a public option and the other reforms

It's not like I didn't know, I was sharing my story to demonstrate the exact contrast that you're describing.

[SOS]

30. If you make under $26 K

Check out Healthy NY

It's $290 a month.

[Lorien]

24. You aren't subsidizing anything but shareholder stock values and a fat cat

CEO's ultra luxury lifestyle.

[grahamhgreen]

7. http://pnhp.org - single payer now or bust

[Trillo]

8. The state of the Art of Insurance has come a long way

from the concept of everyone chipping in an equal amount regularly, to pay for those who need to pull some money out for whatever the insurance covered.

[subterranean]

11. Have you looked into buying your own insurance?

Surely there must be a comparable policy that you could get for much less than $36K a year. Would the company still be willing to chip in if you opt out of their insurance plan and find a cheaper one?

[HughMoran]

14. Yeah, they even offered to pay my Cobra payments and hope that reform is passed in the meantime

I'm not sure this option is legal though. I will say that I am considering other options as this is completely ridiculous. Add in my mortgage payment and child support and we're looking at $50,000/year before utilities and food, never mind saving for the kid's college. Maybe I'm not as spoiled as some above would imagine :(

[REACTIVATED IN CT]

33. It's legal so you might want to take them up on it

Its costing them less so they're happy and its not taxable to you. Good deal all around.

[Ruby the Liberal]

13. Think its bad now?

What happens when the jobs start coming back and people jump ship to other employers for a better job and lower insurance rates.

Then we will see small businesses scrambling to hire people who aren't even competent to handle the positions that just got vacated.

[HughMoran]

15. This will happen without healthcare reform - small business rates are becomming unaffordable

The only good thing here is that even some Republicans agree that small businesses can't compete in the job market the way it currently is and will support this aspect of reform, though I still think it's all in vain if there's no public option to keep these criminal insurance mobsters honest (ha!).

[Ruby the Liberal]

16. That was my point -- and my frustration

The "Chamber of Commerce" is fighting reform tooth and nail, but IIRC, 85% of our country is small businesses. WTF don't they wake up to see that reform is about HELPING these small businesses???

[HughMoran]

36. Chamber of Commerce is just a right-wing front organization

They have nothing to do with commerce - the "chamber" is accurate though - as in anal chamber.

[saracat]

19. Yup. My husband and I pay over $1000 a month and have a $5000

deductable. It sucks.

[HughMoran]

21. That sucks.

It's time to eliminate the criminal insurance mob operations.

[saracat]

28. And none of it matters unless they go after the Big Pharma as well!

I am just so fed up with it all.

[cap]

22. I hate to jack up your blood pressure even further but wait till you actually try and use it!

we have Independence BCBS PPO as a small business. For $1700/month (man and wife), you would think that we at least have gold plated insurance. We are certainly paying enough. For some of our providers they are only paying $40 on a $150 bill! Why? Because the allowed rate is much less when you are covered by a small business. It is the same provider and same Independence BCBS PPO that we had when my husband worked for a big company but they just wont cover as much. And they don't tell you that upfront. In fact, it is impossible to get the insurance company to tell you upfront what their charges are going to be!

I have hundreds of dollars of medical expenses not covered by BCBS PPO! It sure aint the same BCBS as my Congressman.

Just watch out when you have any major procedures done and get everything in writing!

I hope I don't send you to the psychiatric ward with this info. :) !

Solidarity Brother! I am hoping and praying for the public option.

[HughMoran]

23. My small-business owner is going to write me a check for Cobra

It's just not worth using the insurance offered. We are both hoping that insurance reform is enacted before my Cobra runs out next summer. :( If not, I'm going to flip-out.

[midnight]

27. Hearing your struggle and other makes me so curious about

what change process is most productive. We work hard to elect an official who says what we are experiencing is wrong, but then let's it continue after months of bailouts for the richest in this country. So it seems that we are not going to have that change form the finance committee who's outspoken advocate for the insurance co. is pissing away our rights. That said, I'm trying to be hopeful that this mess will be scraped and real reform will be implemented.

[tridim]

25. Health insurance, in the IT industry?

Where?

Every single job I've interviewed for in the past few months has been 1099 contract/no beneifits. EVERY SINGLE ONE.

[HughMoran]

29. I can vouch for this!!

I didn't mention the interim 1099 contract job I took in between. The only saving grace was the ARRA subsidy that allowed me to keep my insurance at a reasonable rate. Now I'm back to reality (which would have hit me in either case if I had continued as a contract worker.)

[SOS]

31. At these prices, the system will collapse

It is estimated to collapse completely by 2018.

Then we'll see a TARP program for the insurance companies!

[HughMoran]

32. ...or the smell of burning high-rise insurance buildings

We'll call it 9/11/2018.

[high density]

34. I saw the same thing at a small company I worked for

Later on I ended up working for a big company and my health insurance cost was two thirds less. This was a combination of my new, larger employer paying a higher slice of the cost and a lower cost overall to such a large company with thousands of workers. I am afraid though to see what our rates will be for next year. Every year they seem to go up high enough to swallow the raise (if any) we got through the year. Why corporate America isn't fully on board with this reform I will never know. They seem to be tired of these skyrocketing costs as well.

[Liberal_in_LA]

35. $3000 a month! wow. That's a mortgage payment for a very nice home