THE GREAT DEBATE: Group Health Broker vs Individual Health Broker
“Because the ACA requires minimum levels of coverage and prohibits insurance companies from denying people coverage because of pre-existing conditions, individual plans are better and easier to get. Plus, they’re often more affordable than comparable group plans.” – On Exchange vs Off Exchange – Individual vs Group Health Plans .
How does your group health insurance rates compare to the individual market? Go here Blue Cross and Blue Shield Easy Rate Calculator and compare.
Just for grins we looked up rates for Joe Sixpack, a 42 year old male in South Texas who has high cost chronic health care issues, visits his doctor every other day, and takes expensive drugs. For less than $334 Joe can get the Gold Plan with a $1,000 deductible and free primary care visits. Or he can take the Bronze or Silver plan, it’s his choice.
If his employer was to offer an ICHRA and contributed $300 towards ICHRA premium, this Joe would only have to pay $34 per month for a pretty good plan (That’s slightly more than a 24 pak). Or he could select a less expensive plan and end up paying nothing for his coverage while not having to sacrifice a 24 pak.
Meanwhile, down the road, ABC Fence Company offers a plan with an employee rate of $550 for a $2,500 deductible. Hardly anyone can afford dependent coverage so less than 10% cover their families. Where do the rest cover their families? ANSWER: The individual health insurance marketplace And many qualify for federal tax subsidies too, freeing up money for beer and fajitas.
