It's happening all over again, this time with Rand Paul's bizarre "group" health insurance idea. He wants every American to leave the individual insurance market and join a group association plan, pay their dues as a member (added cost), and get a similar group policy break that big businesses get. Sweet, it doesn't simplify buying insurance, it adds a whole new mind boggling level of bureaucracy.
What a deal...but there's a bigger problem.
The inconvenient truth #1; health insurance for employers is really really expensive too (according to Kaiser Family Foundation, 2015):
This type of coverage is commonly called a “group health insurance plan” or “employer-sponsored health insurance.” In 2015, the average premium for single coverage is $521 per month, or $6,251 per year. The average premium for family coverage is $1,462 per month or $17,545 per year (source).Sep 28, 2015.The inconvenient truth #2; worse still, group associations don't kick in the employer contribution side of the premium they normally give to employees:
On average, employers paid 83 percent of the premium, or $5,179 a year. Employees paid the remaining 17 percent, or $1,071 a year. For family coverage, the average policy totaled $17,545 a year with employers contributing, on average, 72 percent or $12,591. Employees paid the remaining 28 percent or $4,955 a year. Feb 16, 2016.Group associations do no such thing, since they just provide a group buying discount for it's dues paying members. And then there are the high deductibles...etc.
The above figures are from 2015, and show pretty generous employee contributions. But the latest numbers from the Bureau of Labor Statistics show employers shifting their costs onto their employees ("Civilian" includes both private and government):
So Rand Paul really doesn't know what he's talking about, and yet, he sounds so confident. Note: Not one of the 2 morning show pundits asked about these two major points, which is why I didn't include them: