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brewens

(13,400 posts)
Mon Apr 1, 2013, 09:03 AM Apr 2013

C-SPAN caller says he buys his own insurance that is cheaper than what his employer

provides. I suppose it depends on what the employer can do given the number of employees, but how likely is that? He didn't give any real details. It was one of those quick statements by a caller that makes you think he's a stooge.

I was working in the lobby of a medical insurance company when one guy came in. I overheard that he owned a small trucking outfit with three rigs I think. He had been employed as a sub-contractor for a larger outfit and had insurance through them. That deal fell through and he was still operating independently and was checking out his insurance options.

This guy was all cheerful and talking about what he knew, or thought he knew about COBRA. I was pretty sure he had no clue about what he was in for. I could tell the woman talking to him was being pretty cute about it and referred him to one of their agents. He left, still in a good mood, but I wonder what happened? Hopefully he was still covered if he had a heart attack!

11 replies = new reply since forum marked as read
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C-SPAN caller says he buys his own insurance that is cheaper than what his employer (Original Post) brewens Apr 2013 OP
Highly likely if he buys a policy that covers little with... TreasonousBastard Apr 2013 #1
Which in fairness, might be a good deal if you are a young healthy person nt el_bryanto Apr 2013 #3
Probably not Sgent Apr 2013 #5
Young, healthy and lucky, and it could work out bhikkhu Apr 2013 #11
Last year we looked for health insurance for my fiancee. ZOB Apr 2013 #2
The tone, brevity and lack of details just made my bullshit detector go off. brewens Apr 2013 #4
My details: ZOB Apr 2013 #6
Its probably true Sgent Apr 2013 #7
If he was legit, I would have expected him to explain a little more. It brewens Apr 2013 #8
He may have had Sgent Apr 2013 #9
Could be EC Apr 2013 #10

TreasonousBastard

(43,049 posts)
1. Highly likely if he buys a policy that covers little with...
Mon Apr 1, 2013, 09:32 AM
Apr 2013

high deductibles for what it does cover.

Premiums mean nothing without the coverages they buy.

Sgent

(5,857 posts)
5. Probably not
Mon Apr 1, 2013, 11:10 AM
Apr 2013

individual polices tend to exclude coverage for lots of items that are significant (mental health including mental health hospitalization, etc.).

bhikkhu

(10,708 posts)
11. Young, healthy and lucky, and it could work out
Mon Apr 1, 2013, 11:36 AM
Apr 2013

...I had health insurance through most of my first 15 years working, but not once did I use it. Now that I could use it, its not offered through my work and I can't afford private insurance.

 

ZOB

(151 posts)
2. Last year we looked for health insurance for my fiancee.
Mon Apr 1, 2013, 10:37 AM
Apr 2013

We found a mainstream HMO with decent coverage for about $450/month. There are people with conditions that make them more expensive to insure and cities that just generally have higher premiums, but this guy's claim is definitely possible, though probably not accurate for all.

brewens

(13,400 posts)
4. The tone, brevity and lack of details just made my bullshit detector go off.
Mon Apr 1, 2013, 10:58 AM
Apr 2013

It seemed like a caller with an agenda. Telling us the system is just fine. Sure, just buy your own if you don't like your employers! Probably a guy that had great employer provided coverage that doesn't want to see that change.

 

ZOB

(151 posts)
6. My details:
Mon Apr 1, 2013, 11:14 AM
Apr 2013

Well, my fiancee's...female, age 26, generally healthy. Cleveland/Akron metropolitan area. Copays in the $30-$40 range. The plan wasn't cheaper than her last employer's plan, but it was close.

A generally healthy person living in an area with low health insurance rates might very well find their own insurance cheaper than an employer's plan. This caller might have been bullshitting, but it's not out of the realm of possibility.

Sgent

(5,857 posts)
7. Its probably true
Mon Apr 1, 2013, 11:15 AM
Apr 2013

individual plans have these advantages in pricing, from largest savings to least:

1) Individual plans have medical underwriting and exclusion (you can't buy it at any cost). Even small group plans are required to write the policy, although many can rate (increase premiums) for bad health if a smaller group.

2) Benefits -- most individual plans have higher co-pays, deductibles, etc. than even the cheapest group plan.

3) Exclusions -- individual plans exclude many areas of care which are covered by group plans (mental health being one of the largest). They also have a 1 year pre-existing condition exclusion.

Note: Pre-existing exclusions operate for new individual plans. Conversion of a group plan doesn't have the exclusion (and has higher rates).

brewens

(13,400 posts)
8. If he was legit, I would have expected him to explain a little more. It
Mon Apr 1, 2013, 11:22 AM
Apr 2013

might have been helpful to others in his circumstances if he really found a better deal.

Sgent

(5,857 posts)
9. He may have had
Mon Apr 1, 2013, 11:26 AM
Apr 2013

no inkling of the reason why -- I doubt most people do.

The premiums should equalize a bit when the ACA kicks in, but small group plans especially can be a lot more than individual plans. It has been a while since I've been involved on a day to day basis, but 50-75% more isn't unheard of.

EC

(12,287 posts)
10. Could be
Mon Apr 1, 2013, 11:34 AM
Apr 2013

about 7-8 years ago I was looking and it was way too expensive. This last year I got some and it was one of the same plans I looked at in the past and it was much cheaper. I figure it was the ACA's law about 80% having to go to medical costs requirement. But it was like half the cost it was 7-8 years ago.

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