Comparing Public Plan Options vs Free Market Health Plans- A little Experiment

I decided to do a little experiment regarding the rates and benefits of the Public Plan option vs the Free market plans(private Plans). Mainly, I wanted to see if the public plan option made health insurance cheaper. We are told that having a public plan opton would make it cheaper and more affordable to purchase health insurance. It would keep the private insurers honest. Even though the profit for an insurance carrier is about .6% of every dollar taken in.

I went to the Mass Connector program, and entered my information to get a rate. There was no subsidy for me.
I entered my information Male 36, I just used myself as a single to get a base rate.
My rate for an average plan was $300 per month in Mass. $20 copays, $500/day for Hospitilization, $100 ER, RX copay $15/50%/50%. It is a pretty good plan.

Then I went onto to my quoting website for Pennsylvania residents for healthcare quotes. Sorry for the shameless plug http://www.coselbenefits.com. I entered my information same as I did in Mass and my rates were cheaper. It was $159/month for the same plan and similar copays.

Then I thought, well maybe the carriers average out the rates out between younger and older people so I entered myself as a 59 year old male. The results were almost the same. In Mass, the plan is $771 and in PA the plan is $419.

Here are some other factors I noticed. In Mass, I could not have an H S A plan if I decided to elect one. I could not get a plan with a higher deductible which would lower my premium but cover me for catastrophic care. The cheapest plan in Mass was over $200. In PA, I could find a plan for $55(it is insurance). It would cover me if I had open heart surgery or cancer. I may not want that plan, but at least I had an option for it.

Here is the main point, whenever goverment gets involved the costs are always more than stated. The initial goal is always lost since we make so many concessions in order to acheive ratification of the bill. We are being told that a Public Plan option would reduce cost for everyone for healthcare and improve the quality of care. I just proved to you that a public plan option makes insurance more expensive for everyone. If you read about quality of care just ask some of the residents of Mass to see how long it takes them to get an appointment to see a doctor. The people on the lower end of the economic ladder have complained about the cost of the public plan option and have stated it is costing them more now than before the public option. The time is to voice your opnion about Healthcare reform. I encourage you to email your congressman to share your thoughts. Even if you do not share my point of view.
Here is the link for you to send an email on Healthcare Reform.
http://capwiz.com/nahu/issues/alert/?alertid=
13711461
I will send some more thoughts of mine as healthcare reform heats up.

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One Response to Comparing Public Plan Options vs Free Market Health Plans- A little Experiment

  1. Pingback: Health Care Pricing Experiment « Benefits @ Work

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