Premiums for a Public Health Plan: 30 Percent Cheaper?

Reader Comments
Back to blog

I run a small business and we pay $14-15,000 (with a $4,000 deductible) for health insurance for a family of four. Our rate goes up 10-20% a year even though we barely use it. I'd gladly pay less for a Danish-style health care system. Tax me at $7,000 a year, even though I've seen it would cost as little as $3-5,000/year for their plan.
The problem with the Obama plan, and every universal plan I've seen here in the US, is that they don't go far enough. There are plenty of European single payer and even multi-payer health plans to model a US plan on. Yet we get this half-baked, don't want to upset the private insurers approach. The public doesn't seem to realize that the private health plan administration costs alone are obscene, roughly 12 cents for private group plans and 27 cents for individual plans compared to 4 cents of admin costs for Medicare. Hello? What is the reason to put up with such insanity? As a taxpayer, I want to pay 4 cents, not 12 or 27 cents.Surely that's a no-brainer for any US taxpayer.
Just give us a modern, first world health care plan, please. It'll reduce costs (just look at several European countries for proof). I'm sure our politicians would rather go on and fight about gay marriage, anyway, than do something useful in the public interest.

AZ of AZ 4:36PM April 13, 2009

They've been taking advantage of the public for too long. Health care is about the provision of services, not about a 3rd party's bottom line (ins. co's don't even provide the care, for goodness' sake!) Actually, we'd probably be much better off if we took out the middle man altogether! Maybe create a single-payor system? BTW - I'm a PROVIDER, and I do NOT support the insurance industry - I'm on the front-lines w/ people's needs in MY hands. My professional decision-making abilities are hampered by whether or not a patient can afford something, whether an insurer will "allow" a type of care, etc. Why even go to med school anymore?? We can just sign up w/ big insurance & they can give us all informational booklets on what we can do & how to do it all at the least cost to their bottom line. Saves us student loan money - costs society expertise.

DJ of IL 1:57PM April 13, 2009

The quoted premiums are quite high for the public plan, especially for healthy young adults. Both of our 20-something kids have individual insurance for less than half of that cost.The quoted premiums would be much too high for them to afford.
I'm in the minority for these postings, but I see value in the private plans. For one, they offer choices. I can choose a plan that costs much less, if I'm willing to cover some of the costs myself. As a person who regularly exercises, and doesn't smoke, I can pay less than someone who doesn't watch their health. That won't be the case with a public plan.
Medicare is quickly going broke, so I just don't understand how putting us all on a Medicare based system is going to work without some real changes in the system. How will this really be paid for?

SCG of CA 11:55PM April 10, 2009

seriouly if this is the cost of this insurance then we might as well go to the er. this amount for a month( whether it is for single or family), is outright robbery. i am a single person in their sixties and there is no way that i could afford this. i have two grown children with children of their own and i know for a fact that neither one could afford this. try again, maybe come up with something people can afford or close the case on healthcare insurance.

dr of FL 9:43PM April 10, 2009

It's really hard for anyone to defend keeping the for-profit private insurance model. It adds nothing of value to health care. Quite obviously to the contrary, it only siphons off profits from our desperately needed health care funds.
A few people might honestly think that "competition" in the health care "market" could help our situation, perhaps. After reading many, many articles and keeping up with all the blogs recently, however, I must say that such an overwhelming majority of citizens seem to be in favor of a single-payer system that, if our representatives aren't representing them, who are they representing? Who are they in bed with?

Patty McCredie of AZ 7:37PM April 10, 2009

Seriously. Insurance companies don't provide care. If anything, they're an impediment to getting care. Let's join the civilized world once and for all: one nation, one plan, everybody in, nobody out. It's easy - expand Medicare to cover all Americans from the cradle to the grave. Cut out insurance company inefficiencies, waste, and profit-skimming, and you've paid for it.

JN of CA 5:15PM April 10, 2009

Insurance companies profit by reducing benefits. They also have enormous overhead. Single payer has great advantages.
Also to comment another post, Nurse Practitioners work best when they can consult with a physician during a visit or have the physcian also examine a patient if needed. This reduces referalls to Emergency Departments who like Nurse Practitioner clinics because they provide a lot of referrals. One physician to 3 to 6 nurse practitioners can provide superior care, see a lot of patients and lower costs. Based on personal observation of a big city clinic.

Eriemaster of OH 3:06PM April 10, 2009

It is universally agreed that what is necessary is health care INSURANCE reform. As a former D.C. and published author(strategicbookpublishing.co/TransformingBodyMindAndSpirit.html)who touches on this subject in my book, you cite some good stats and points in the article and comments alike. I have also put forth several of my own ideas for reform in a blog FitTrimHealthy4Life.com. Thank you, Dr. David Robinson

Dr. David Robinson of MA 3:02PM April 10, 2009

REFORM means fixing what's wrong. None of the political blather we've heard is concerned with anything but preserving or expanding the defects in our present system.
The costs are too high because:
Lawyers are siphoning off millions (billions?) for malpractice suits that benefit no one but the lawyers.
Competing "health care" providers are spending millions (billions?) of their clients' money for advertising that benefits no one but the advertising agencies and media.
Insurers (and the uninsured patients) are spending millions (billions?) for prescription drugs that haven't been adequately tested, do more harm than good, are over-prescribed and over-advertised, and benefit few but the pharmaceutical companies, advertising agencies and "news media" that are unethically pushing then.
The mis-labeled "health care" system doesn't even try to care for anyone's health. Those individuals who prudently care for their own health by eating right, getting proper exercise, drinking enough water, avoiding harmful drugs, alcohol, tobacco, reckless behavior, etc. etc. etc. are penalized by being forced to pay for the irresponsible behavior of those who deliberately ruin their own health and then demand that someone else fix it and pay the cost.
The public is encouraged, or even pressured, to consume unhealthful "food" and prescription drugs that shouldn't even be available on the market. The cost of this foolishness is great and is borne by the "healthcare" system.
That's just for starters. Yet all the proposals for "reforming" the "healthcare" system are careful to preserve all the things that are wrong with it. The conversation is dominated by the special interests that reap big profits from the present sick system, and those who are trying to squeeze in and get themselves a piece of the pie.
Obama is the first hope we've had in a generation or two for an honest administration that might try to do what's best for the country instead of caving in to whatever special interests can bid the highest. Why can't the news media do a public service by encouraging an honest discussion of the issue, instead of engaging in the political carping at Obama because he hasn't come up with a quick magical solution to a problem that has been embedded for generations? It's a serious problem. It can't be solved overnight. Some good people are working on it. Get off their backs and give them a chance. The "news media" just might consider serving the interests of their reading public instead of just parroting the nonsense spewed out by their special interest advertisers.

Chuck of OR 2:24PM April 10, 2009

Politics aside, there are three things we could do to lower the overall cost of healthcare. Waste is a simple place to start when looking to reform any system.
I'm tired of Leaders that don't have the courage to bite the bullet to make fundamental changes which will reduce cost and waste in Social Security and Medicare. Our health care system consumes a very high percentage of GNP and it is projected to be much higher twenty years from now unless we start now.
It is past time to take action to correct the fundamentals of a broken system.
1. Transparency.
What you go to a steak house, you know the price of the meal before you order. Why is healthcare the only industry allowed to have over fifteen different charges for exactly the same service? The price you pay is determined by where you come from and your ability to pay. Those with the least ability to pay are charged the highest rate. Since they are unlikely to pay, the facility gets a larger tax break by inflating the charge.
I say tear down the screen and post price's for all to see in advance to eliminate the games played with numbers.
2. Universal Medical Records.
If I'm passed out on a park bench in Florida the EMT has to start from scratch in figuring out who I am and what could possibly be wrong.
This situation leads to extra time being taken at a greater long term risk to the individuals health.
If I opted in to a Universal Medical record, a wrist band could be scanned at the Park Bench to reveal my detailed health record making it more likely that the actions by the EMT will be proper and effective.
It is an individual choice to participate in this program.
3. Single Payor System.
If you see hospital bills from different institutions you will note they are all different and have limited similarity to any other bill generated in the system. There are federal standards for these bills but it is very limited.
So much time is wasted by many with detailed bills, summary bills and duplicate charges.
A single payor system for under 65 health care makes everyone play on the same field with the same billing, payment and approval systems. The diversity of current healthcare billing systems facilitate manipulation, waste and fraud.
Significant changes in these three areas would reduce waste and improve care thus reducing overall cost. Let's improve the foundational structure before we take on socialized medicine.