I did a quick exercise on my health insurance costs and assumed that I would be keeping the same policy over the next fifteen years until I make it to Medicare age. I looked over the increases over the past several years and they average 20% (just a hair over, but for the sake of clean math, let’s say 20%) over the previous year.
If we start at annual premiums at $5,760 and calculate that out at 20% increase over the previous year, we end up in 2026 at $88,744. Please, double check my math. I think that is way too high.
My increases in costs year over year per year are:
In reality, I’m not going to pay $88K in health insurance premiums. I am going to search for another provider, maybe get a lower introductory rate the first year, then increase the deductible next year and squeeze that out for about 3-4 years before switching to another provider. But as there are only a few providers worth a damn in Ohio, I will either have to move or buy something that may or may not cover me. But I will pay substantially more and get far, far less than I am today.
In 2011 alone, I have spent more than $6,000 out of pocket in medical costs that Blue Cross Blue Shield of Ohio did not cover. I don’t know why; they just didn’t. So the true cost of me having insurance is the cost of premiums PLUS the out of pocket, but for the sake of simplicity, let’s stick to just premiums.
And I look at these increases which is real money I will pay to an insurance company for a guarantee that they may or may not authorize a medical procedure that they may or may not deem medically necessary. And after 2014, while they can’t kick me off the plan for a pre-existing condition I incurred last year, they can then increase my rates so that I can no longer afford the plan. In effect, they will kick me off the plan.
I think to myself: If my TAXES were to increase this much per year and I was guaranteed medical care coverage when I needed it, would this not be a better deal? We fight against a small tax increase to cover everyone in favor of paying a private insurance company obscene premiums for something that carries no promise of delivery.
Does anyone else do these calculations? Or do we just write the check, bury our heads and believe the common mythology of private insurance is better than a “Medicare for All” solution?
Somebody please, check my math. This is kinda nutty.