A Business Owner Figures Out How to Save on His Health Insurance
Joyce Park stashed this in Healthcare
Excellent, informative article by a small business owner about the benefits of Obamacare for small businesses. Key takeaway: "The Affordable Care Act has fundamentally restructured the market and eliminated much of the baffling obscurity that used to make a health care purchase so difficult." Data transparency FTW!
Cool, that transparency net-net should be a win for all.
And yet there's still so much misinformation out there. We still have a lot to learn.
My friend has a consulting company which as part of the reasons was setup was for the purpose of providing health care for his family and a few other contractors for coverage under a group plan instead of the individual plan. In fact, it was to provide continuity for a pre-existing condition. Under Obamacare, inline with the article, the group discount will no longer apply and he will have to pay all under individual policies with no group discount. Second, his policy for his small business is going to go away, so all the financial decisions he made for the past 5 years to do the right thing have been completely invalidated. Obamacare claims they will make up this increase in premiums, decrease in services, increase in deductibles--basically the individual parts are worse than the sum of the whole--with subsidies paid for by the taxes of "people who supposedly can afford it because they won the genetic lottery", but he doesn't qualify as his small contracting company actually has income. So, the company, jobs, and his insurance are all going away and he's being forced to either pay a lot more for the same coverage or the same for a lot less. The taxes he was paying as part of the company--taxes that would have been going to paying for other subsidies--is going away. A bad deal all around. I don't see how this is sustainable.
The math goes something like this:
Tens of millions of new people get access to health insurance for the first time.
In exchange, the system will be worse for 5% of the population, all of whom will complain loudly.
Not everyone benefits from this move, but a lot more people benefit than don't.
And yes, some people get screwed. Which sucks.
But many fewer people get screwed now than before.
Now the policy makers need to improve the system again to unscrew the new people getting screwed.
Lord knows how long this will take given how long the last improvements took.
PandaWhale is a very small business and yet our group insurance certainly did not "go away" as a consequence of Obamacare. Maybe the problem was a price-gouging insurance company that had nothing to do with Obamacare? In fact, now we CANNOT be denied for a pre-existing condition... and when you've had a major brain injury that cost $300K to treat, that gives you quite a bit of financial peace of mind.