We just received our annual health insurance enrollment papers through our employer. As expected, the premiums have increased again this year.
It is extremely fortunate that our university pays a major chunk of the premium for employed graduate students (teaching and research assistants) who enrolled before 2005 - without the university contribution, it would have been a disaster.
Looking at the regular health insurance premium numbers that our HR department provides us, sometimes I think they are way inflated. For part-time employees (like graduate students), below is the “total cost” of the insurance options mentioned in the brochure (not including life, dental, vision, and long-term disability). After the employer’s contribution, the out-of-pocket premium payments per month are mentioned in brackets alongside. These values are for “employee-only” plans.
- Option 1: $437 ($251 out-of-pocket)
- Option 2: $368 ($181)
- HMO 1: $395 ($208)
- HMO 2: $487 ($300)
- HMO 3: $405 ($219)
- Really sucky plan “specially created for students“: $196 ($9)
The cheapest option for students is the $9 plan, but like I mentioned - that one really sucks. High deductibles, pathetic service, and really painful billing and reimbursement procedures are among the highlights of that *cheap* plan.
Anyways, the point is, look at the original cost that they are billing - health insurance that costs $487 per month (HMO 2)? That’s $5,844 per year for a single person!
If you are a super-determined graduate student employed by the university - studying and supporting your family with your part-time income - all I have to say is: may god have mercy on your soul! Here are the monthly out-of-pocket premium costs for employee+family coverages:
- Option 1: $646
- Option 2: $494
- HMO 1: $712
- HMO 2: $906
- HMO 3: $506
- Really sucky plan “specially created for students“: $854
Look at the above data in light of the fact that there are numerous graduate students on campus who are paid less than $1,000 per month.
In our special case, since both me and my wife are working for the university, we just have to worry about employee-only coverages. Also, since we joined the university before Fall 2005, there are some additional perks in terms of university contribution - something that new students (who joined after 2005) do not get. Overall, for our choice of coverages, the deal for each of us comes to about $75 per month - this includes dental and vision insurance, accidental death and dismemberment, basic life insurance, and long-term disability.
So, to sum up, we spend about $150 per month on health insurance as a family without kids.
Considering the situation of the students (or other part time employees) who joined after 2005, I have to say that we are very lucky to have what we have. For the kind of coverage that we currently enjoy, the new employees will have to shell out $500+ for a family without kids. That’s ouch.
{ 3 trackbacks }
{ 13 comments… read them below or add one }
I pay $82 for High Deductible coverage for my whole family and max out a HSA. The standard plans run from $300-$400 for the Employee part. For the HSA, you get a debit card so paying bills is easy.
For me (age 27, wife 26, 2 kids), this savs me about $2000 a year.
To put things into perspective, we start with copays (generally $25/visit) directly without any deductibles. No percentage splits beyond the copays - stuff like you pay 20% and insurance pays the rest.
The only deductible is the $50 per person per year on prescription drugs.
The out-of-pocket maximum per year is $3000.
That is similar to the one that would cost me $388 a month for the family. In the high deductible plan, I just have a $2700 per person, $5450 per family deductible, then 20% after that.
My HMO health insurance costs 425.96 per month for me only; I pay $25.45/month and my employer pays the rest. Next year the HMO will no longer be available. We will be on a PPO plan that costs $369.12/month but $0 out-of-pocket. Additional family members can have half their premiums paid for.
This is a regular insurance with co-pays and normal deductibles and lower charges for preferred doctors and medicines.
I have a High Deductible Health Plan. I love it. I only pay $40 a month for my husband and myself. It’s perfect for us. I think of it as just another insurance policy- like car insurance. Hope that you never have to use it- but if something happens, you’re only out a thousand dollars- max.
My employer also contributes to the HSA and I can as well, pre-tax. Also, we both get preventative service for free. Works for me! It makes people think about if they really need to go to the doctor- and not every time they have a runny nose and only pay their $10 co-pay, when the doctor charges $60.
I think this is the way insurance is going- so that people start thinking about their health because they’ll start to have to pay more for it. I don’t know why people think they are “entitled” to cheap, but quality health coverage. It’s never going to work that way.
Golbguru,
I pay more than I’d like to pay, but probably much less that it’s worth
Seriously, at my company, it has changed from no cost to about $100 per month for very good family coverage. While not free, it’s still very reasonable at today’s cost. Fortunately, we all have been very healthy and accident free (knock on wood) and rarely ever use it.
We pay $442.00 a month for both of us with a major carrier. That includes Dental and a Maternity Rider. My husband is ex military, so he has VA coverage, the downside being is that he has to drive to Murfreesboro a 2 hour drive, and the coverage is not that great. He is also a student so his college offers health insurance. It’s the biggest pile of crap I have ever seen. I’m a licensed life and health insurance agent and I have seen some pitiful plans but his college plan is a disgrace.
Emma: You coverage is through an employer or you are getting it independently? That sounds on near the higher end of the spectrum - probably because of the maternity rider(?).
High insurance costs of students really stings - as it is there are enough student loans and low paying jobs to take care of.
Hi
Good post. Helpful for working graduates.
This is my first time visit to your blog. Looks resourceful.
Rajesh Shakya
http://www.rajeshshakya.com
Helping technopreneurs to excel and lead their life!
I am medically unable - forbidden - to work more than 25 hours per week, so I do not have any health insurance through work. Because of said medical issues, I NEED health insurance. $561+ for myself, out of pocket. More than 40% of my takehome salary. Add medical bills and prescriptions, and it exceeds 64% of my takehome.
If your employer pays ANYTHING, please, I beg of you, be GRATEFUL.
Also note that Michael Moore is collecting videos regarding our (USA) health care to present to Congress. Love him or hate him, this is a valuable opportunity!
The following is from a blog post, which I also cross-posted to The Consumerist
Michael Moore is collecting videos about health care nightmares!! Watch his video plea and then, if you are so inspired, join the Sicko the Movie group to send yours to the Sicko the Movie" group.
My employer pays $1000 of my $1400 per month family insurance. It’s a cadillac plan - you pay in a huge amount and consequently I have almost unlimited choice and minimal other payments. I am really dissatisfied with it while I’m paying it, but then when there’s a big medical bill and the insurance picks up the whole thing, I’m happy. It’s a love/hate relationship, and sometimes I wonder if I’d be better off just pocketing the money and putting it in a savings account. That would work for “minor” major illness, but not for an extended stay or anything. Who knows. Health care in America is an unbelievable headache until you get on Medicare…
I pay $55 a month for a individual high deductible plan. This is much cheaper than my university’s student group health insurance. Plus my private insurance provides more benefits than the university plan.
I get my Health care at the VA and because I have a service connected disability of 60%, all of my health care is free. All prescriptions are free with no deductable. No dental coverage though. The nearest VA hospital with an emergency room is 100 miles away but the VA will pay for me to go to the nearest hospital for emergencies.
Insurance companies, greedy doctors, and absurd malpractice lawsuits have ruinied it for everyone.
Leave a Comment