NPR News: Age, Gender Skew Group Health Care Rates
by Sarah Varney of NPR
October 21, 2009 from KQED
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NPR News: Age, Gender Skew Group Health Care Rates
Courtesy of Sarah Varney - Sarah Varney's employer-provided HMO covers her, her husband and their son. The premium — including what her employer pays — is $1,600 a month. Varney decided to find out why her insurance is so expensive.
Perplexed by the unusually high rates she was paying for her employer-provided health insurance, NPR member station reporter Sarah Varney set out to better understand the system. She discovered that small companies’ rates are dictated by the demographics of their work force — and when the work force is small, it can spell complications, higher prices or both.
We’ve heard a lot about how tough it can be for people to buy health coverage directly from insurers. They can be charged more if they’re older, sicker or female. You might think that if your employer provides your health insurance, you’re immune from all that.
Well, it may surprise you to learn that how much you pay can have a lot to do with what your co-workers look like.
Looking at my paycheck, there’s a long list of taxes and deductions: Social Security, Medicare and a little money toward my retirement. The biggest deduction of all? My health insurance premium — it’s a whopping $600 a month for a standard Blue Cross HMO plan for my husband, my toddler and me. My employer kicks in another $1,000 for a grand total of $1,600 a month…. more on full story.