Monday, February 16, 2015

The End of Employer-Provided Health Insurance: Why It's Good for You, Your Family and Your Company

The book, The End of Employer-Provided Health Insurance: Why It's Good for You, Your Family and Your Company, by Paul Zane Pilzer and Rick Lindquist, is based on the premise that the Affordable Care Act, also more commonly known as Obamacare, is good for America, both individuals and businesses.

The book describes how companies are now moving towards a defined contribution model of health benefits, as opposed to a defined benefit model. The authors state that this change will allow employees and business owners to save as much as 60% on health insurance. They explain that health insurance provided by an employer is a financial risk to the employees, and is far more expensive than individual health insurance, even with the same doctors and the same hospitals. In addition, with a subsidized individual health policy, your premiums don't go up unless your income does.

What I like about the book is that it is the first that finally explains Obamacare in a clear and concise way, with lots of examples and specific information. In addition, Appendix A shows the health insurance rates for every state in the union for all levels of coverage, whether employer provided or individual, for both family and single. The section for startups and small businesses is very useful.

One concern is the mention of the fact that the benefits are available due to the "trillions of dollars in federal subsidies to consumers" and "hundreds of billions of dollars in federal subsidies to insurance carriers." The authors really don't say where those trillions of dollars come from. It doesn't come out of thin air. Let's say it is only two trillion in subsidies. Divide that by 320,206,000 Americans, and it works out to a subsidy cost of $6,246 for every man, woman, and child. Where does that money come from?  These subsidies come from the backs of American taxpayers in the form of increased taxes or increased federal debt or both. Either way, an indirect but severe cost to the American taxpayer.

Anyway, if you want to get a complete understanding of how Obamacare works, and how immediate health insurance costs can be reduced, you should read The End of Employer-Provided Health Insurance: Why It's Good for You, Your Family and Your Company.


Anonymous said...

Why is it that when people talk about a 'free' benefit from the government, they don't realize that someone has to pay for it, and it's not just through taxes on the rich. The middle class ends up getting higher taxes also. If taxes are increased on corporations, then all Americans get indirectly taxed, either through layoffs, limits on raises, or higher priced products and services, since the corporations need to cover those higher taxes.

Stockerblog said...

This is a very cogent and accurate analysis of government benefits.