A new federal health care plan with no exclusion for "pre-existing conditions" offers insurance premiums significantly less expensive than current plans.
Under the Wyoming Health Insurance Pool, a 65-year-old resident living alone making less than $27,225 would have to pay $918 a month for a plan with a $5,000 deductible. But the new federal plan offers premiums that are far cheaper: A standard-option plan with a $2,000 in-network deductible would cost a 65-year-old Wyoming resident $403 a month.Back-of-the-envelope calculations: 12 x $403 = $4,836 + $2,000 = $6,836/$27,225 = 25.11% of one's pay (the article did not say whether the $27,225 was net or gross).
“That is a stunningly low premium, stunningly low,” said Jay Angoff, senior adviser to U.S Health and Human Services Secretary Kathleen Sebelius.
Somehow I don't see 25% of one's salary as "stunningly low" when one is living on the margin.
The state premium, $918 with a $5,000 deductible (~ 60% of that salary), is incomprehensible.
All 65 year olds are on medicare . There are several supplements to Medicare that are optional. Basically they add coverage beyond Medicare.
ReplyDeleteUntil you reach 65, yes health ins is expensive to purchase and private sector companies are transferring more of the cost to employees in the form
of higher ded, out of pocket max and copayment every year.
Wow, you are so correct! How did I miss that? Yes, at 65, he/she would be on Medicare and would not need to sign up for health insurance (except as a supplement).
ReplyDeleteMan, I don't know how I missed that -- I knew that, too. Thank you.
The next question is how did Federal government Health and Human Services spokesman miss that? Why did they use example of a 65 year old? Are we missing something in the new health care bill? I truly am perplexed? Why did they use "65-year-old" as the example. Why didn't they use a "25-year-old"? Maybe the premium for the "25 y/o" was way too high. Maybe the federal program is like a supplement to Medicare. I really don't know but I missed it and you caught it. Thanks.
I may do a stand-alone post when I get time so others see this and maybe point out what we're missing.
Thank you.