There is a very common myth among people that health insurance is like a savings account wherein if you invest $5000 a year you would get $5000 in benefits back to you after a year , two years or so. But the fact is that when you buy a health insurance you are paying up the insurer stating that when you get sick you’re paid up money would just be repaid by the insurance company. But for many this insurance is like a bet which would never make their benefits received in the terms of premiums they have received. Say for example only 1% of us will experience cancer but still all of us pay up for the insurance premiums as we get around 25% of population to enter into some form of cancer.
The group insurance which is being received through the employers, average out of the insurance costs for all the members within that group. When the group plan is initiated the insurer evaluates the risk of participants involved in it with adding up of costs, sums up the number, and gets a profit margin which would arrive at total cost to insure up the group. Such type of calculations and deal is good for a person who is old and having various defects but not good for a young individual. But Federal laws have same laws for persons insured under the group insurance with same money charges.
If one is thinking that such misbalancing is only into the public health insurance then you are wrong. This insurance scheme is applicable to both private and public health insurance plans with an equal amount of taxes at same salaried people.
The only alternative to this is to drop up the insurance wholly which would lead to an ability to pay up the cost on the an individual basis only. None of us wants that and so many of us will pay up more in form of either taxes or premiums which would get one the medical benefits for insurance premiums.
The payment imbalance will not change unless the IRS probes deeper into people’s private affairs.
The group insurance which is being received through the employers, average out of the insurance costs for all the members within that group. When the group plan is initiated the insurer evaluates the risk of participants involved in it with adding up of costs, sums up the number, and gets a profit margin which would arrive at total cost to insure up the group. Such type of calculations and deal is good for a person who is old and having various defects but not good for a young individual. But Federal laws have same laws for persons insured under the group insurance with same money charges.
If one is thinking that such misbalancing is only into the public health insurance then you are wrong. This insurance scheme is applicable to both private and public health insurance plans with an equal amount of taxes at same salaried people.
The only alternative to this is to drop up the insurance wholly which would lead to an ability to pay up the cost on the an individual basis only. None of us wants that and so many of us will pay up more in form of either taxes or premiums which would get one the medical benefits for insurance premiums.
The payment imbalance will not change unless the IRS probes deeper into people’s private affairs.
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