Better Off Dropping Employer Health Insurance for Individual?

Employer sponsored health insurance plans seem to be covering less and less as health care costs skyrocket.  It’s leaving many Americans wondering if they should just drop their employer health plans and compare individual health insurance plans.  While the premiums will likely be more with an individual plan, you have to factor in all of the out of pocket costs you may be saving on as employer plans cover less and less.  In the NPR article, “Health Insurance Cutbacks Squeeze the Insured,” Rob Stein tells the heartbreaking story of a family in California losing out as their employer sponsored plan covers less and less of their health care.

The woman in the article is married with a five year old son and receives health insurance from her employer.  She had a liver transplant at age ten and has to take daily anti-rejection medication as well as have monthly blood tests to ensure her body is not rejecting the transplanted liver.  Last year, she was devastated to find out that her company was changing their health insurance options and would only be offering one plan, a high deductible health insurance plan with no prescription coverage.  This woman was lucky to find a charity organization to cover her $1,000 monthly prescription, but has been unable to afford her $300 monthly blood work bill.  Skipping these appointments and others when she and her family are sick can cause big health problems, but they simply can’t afford the added costs.

As the cost for employers to offer health insurance skyrockets, the plans they are offering have become less comprehensive and more basic.  Americans have seen their deductibles, copays, and cost sharing increasing over the past few years and there is little that they can do about it.  Those who have health insurance coverage are finding themselves paying thousands of dollars each year before the health insurance they pay for actually covers anything.  Employers are not fully to blame here; they are trying to keep up with inflation and rising health care costs without going under as well.  This is particularly trying for small employers who are already struggling to get by in a tough economy.  These rising out of pocket costs are forcing many Americans to see if they can actually pay less getting individual health insurance from a company like Aultcare.

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