One of the many problems with the current model of health insurance is most of the time it is delivered to us through an employer.
- Someone else picks your insurance carrier
- Someone else picks your insurance plan choices
- The real cost is hidden
- Employees assume that is the best choice available
The opportunity cost of not looking at other options is obvious. You have to look at all your options. Most of the time the employer is mandated to pay for at least half of the employee only. Many employers pay for 100% of the employee only. In other words, FREE. This would be what we call “a no brainer”. No need to shop that option, just take it and go kiss your employer.
What are your other options? Perhaps there are two employers offering health insurance in a household. Maybe there are ways to slice and dice the coverage to leverage the best possible deal.
The chart below is the average cost of single and family health insurance through an employer.
In 2015 the average monthly health insurance premium for a family was $1,462
In 2015 the average monthly health insurance premium for an individual was $521
Knowing what something really cost is essential to helping solve the health insurance problem.
If your employer picks up the majority of the cost then you can really add that value to your salary because the cost is the same regardless of who is paying for it. Time also changes the dynamics of the cost. It is hard to believe cost can triple in such a short period of time. Make sure your data is correct in your analysis of something being a really good or even a bad deal.