Wednesday, July 8, 2009

Do you have a health insurance?

Don't be so sure. You might lose it when you actually need it. Apparently, insurance companies slap a $1M surcharge on corporate policies that carry expensive patients. The companies then face a choice of whether to essentially pay you a $1M+ salary or...

Incidentally, in 3/4 of all medical bankruptcies (which are half of all bankruptcies in the US) people had health insurance.

1 comment:

nathan3700 said...

That is interesting. I wonder what kind of contract that insurance company had with the employer. Obviously, you can't just slap a million dollar surcharge if it wasn't agreed to contractually. If you can, then this is illegal, and the remedy is in the courts. What makes a free market work is strong contract law.

In a country that values freedom and the Constitution, the remedy is not what is being discussed on Capitol Hill. The closest thing to a remedy that I could support (but with reservations) would be the Wyden/Bennet bill.

I myself am willing to select insurance that puts a life time cap on benefits of 10 million. If it costs more than 10 million to keep my alive, then it is too much of burden. That equals 10 human lives. If I were to have insurance of unlimited payout potential, the premiums would be sky high and I wouldn't take the trade off. The single payer system picks the trade-off's on my behalf, which is un-american. The current bill on Capitol Hill allows private insurance but would eventfully crowd it out.