Oh, I agree with all of that. TIM was making statements that people don't want group, if they are healthy. I was in a group, I was healthy, and I only paid $25/month. That was all I needed to pay. So, his statement was inaccurate.
My statement is NOT innaccurate. You show me a group plan, where the ENTIRE premium is known, and compare that to individual rates. There is no WAY ( unless you have an entire group of young single males, 25 and under ) that the group rates are going to be less expensive than individual. Small group is guarantee issue. They have to give it to you. Individual, you have to QUALIFY to get. You have to be healthy enough to get it. Group rates are NOT less because of "having more risk to spread around". Last time I checked, General Motors is a group through Anthem, and they have some of the highest rates around.
You may have only paid $24 a month for your portion of it, but I guarantee you your single rate was at LEAST $300 a month if you had NO DEDUCTIBLE and no other out of pocket. You are paying the carrier to take on all your risk, no matter what, and that's just ridiculous. They make more money off managing the first $5,000 in claims than they do anything else. Why? Most people won't even come close to that, so you are basically handing them your money for nothing. Example:
$300 a month - no deductible -Worst case is $3600 a year, best case is $3600 a year. (you)
$70 a month - $2500 deductible - Worst case is $3340, best case is $840. (me)
Who's winning that game?
Group insurance is a complete joke, especially if you live in any state with a state insurance plan like Indiana or Kentucky. Employers can still provide and pay for the premium for individual insurance, give everyone the same benefits they had before, even with some folks on the state plan. They save much more than they risk. It's simple math. But who doesn't agree with this? Group agents who make money on commision bonuses and overrides, that's who, and the insurance carriers that they provide with billions in excess premium every year.... actually, more like about a trillion dollars wasted in the United States every year.
No one needs group insurance. It's just that buying group insurance is what has been crammed down our throats for so long, most people think they don't have any other options. I have groups with members of the same group on medicare, individual, and HIPAA plans. But guess what? ALL of their benefits are EXACTLY the same as long as they are employees. And, the employer is now paying less than half of what he was paying in total for group insurance.
The only people who will argue that group insurance is better are those that make a huge amount of money on it. What incentive do they have to show their clients anything else? Do you honestly think they want to cut their own commissions?
Funny thing is, I make more money on a group with MY strategy, than your typical group agent does, and my clients pay anywhere from 20-50% less out of pocket. I make more money, the customer saves, the employees have the same benefits.
Who's winning THAT game?
Also, for those that want to retire early... good luck! With group, your most likely only possible choice will be COBRA for 18 months.... then what? Good luck! WIth individual, you OWN the policy. Do you want to buy a house and rent the land? Or do you want to own the land also? Your choice.
The simple fact is this: if you can get individual, get it. It's always yours as long as you pay the premium. If your employer have been told that they can't pay for your individual premium without having to count it as taxable income, they're wrong about that, too.
