drip
Lv 7
drip asked in Business & FinanceInsurance · 2 months ago

Affording health insurance?

Looking at plans and can’t find any thing close to being affordable.  At least $1500 per month for my husband and I. And those have a deductible VERY high deductible  to meet before they pay out for most services. Even doctors visits and prescriptions, some deductibles were at $7000.

So $7000 plus $1500 per month before they started to pay out. 

My husband.  is an independent consultant and I work part time. 

Anyone have a decent plan at a decent price?

4 Answers

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  • Erik
    Lv 7
    2 months ago

    Yes, at my job it's only about $200/month.  I still don't get it though, I can't afford it.

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  • 2 months ago

    If your husband files taxes on a schedule C, your families health insurance premium cost is a 100% deduction.  You will pay the money the $1500 but this reduced your taxable income by the same amount ($1500). 

    - So let's pretend your husband earns $75000 a year, instead of paying taxes on $75000, you will pay taxes on $57000 (12*$7500=$18000; $75000-$18000=$57000).

    Also, if you have a high deductible plan, select one that is HSA compliant.  This will allow you to contribute money to a savings/investment plan called a health savings account to be used for medical expenses not covered by insurance like your deductible.  This money is contributed on a pre-tax basis further reducing your taxable income.  For a family (i.e. husband & wife) you can contribute $7100 to this account in 2020.

    If you go to an in-network doctor, you will see benefits of health insurance from the very first visit.

    - due to negotiated pricing, you will spend between $12000-$21000 compared to a cash patient to meet the deductible

    A cash payment may spend $150 for a general office visits, where as with insurance you might pay $50-$125

    The cost of health insurance varies greatly by state.  My state is on the less expensive side.

    - Do I think it is a great plan at a great price?  I have a HSA compliant plan.  the cost has more than doubled in 5 years and the deductible is more than 30% higher.  I'm very happy with the plan.  I'm not pleased with the price.  All you can do is use this as one of the items you are going to vote on in 2020.

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  • Anonymous
    2 months ago

    I'm somewhat in the same position that I'm on COBRA at $2k a month for my wife and myself.  the advantage I have is that I have a deductible a 1/10th of yours but I wonder where all this money is going when the insurance companies are mandated to pay out at least 80% of the premiums they take in for health care (85% in large markets).  I suspect I'm paying for all these people who 'suddenly' have no or low cost health care.

    • A Hunch
      Lv 7
      2 months agoReport

      If you are using the insurance, you are much better off going with a high deductible plan since this greatly reduces your fixed costs.  You are paying for the low cost health care but not through your insurance premiums = that's through your taxes. 

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  • Bort
    Lv 6
    2 months ago

    This is why Obutthole's change to the health care system is an insult to a train wreck calling it a train wreck. It made it so individuals who for whatever reason want to get insurance on their own, not through an employer, can't afford it. It also made it so physicians, hospitals, etc, can deny someone who doesn't have coverage any treatment. It's a horrible mess. And it's definitely not "Affordable".

    You just have to keep shopping until you find coverage that works, and that you can afford.

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