Friday, December 09, 2011

The Price is Wrong

As we've pointed out (repeatedly), no rational employer is going to continue offering group health benefits to employees once the Exchanges come on-line. FoIB Holly R sent me an article this morning that asks an intriguing question regarding that assumption: not about whether it's valid (it is), but what it will cost the employee once that happens.

It's an excellent question, one which I had not previously seen addressed: how much is it likely to cost Joe Lunchbox to move from his employer's group health plan to one offered through the Exchange (and potentially subsidized by his fellow taxpayers)?

Turns out, the cost could be substantial:

"Lockton, a Kansas City-based company that consults with mid-sized companies on health insurance benefits ... predicts [employees'] premiums would increase anywhere from 79 to 125 percent if they lose employer coverage and have to go to the exchange."

Here's 1,000 words to explain it:

[click graphic to embiggen]

How's that Hopey-Changey thing working out?
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