U.S. Healthcare implications from COVID

[HALL85]

Our Health Insurance broker shared some interesting 2020 stats today:

* For 2020, the average weight gain for U.S. population will be 8lb/person.
* Pediatric visits are down 50-60% this year
* Adult primary care visits are down 40-50%.
* Mental health visits are down 20-30%, but demand is up 40-50%.
* Chronic condition compliance is down by 30-40%.
* There has been an increase of antidepressant, anti-anxiety and anti-insomnia prescriptions
* Almost 80% of those prescriptions are new.

Essentially, an unhealthy population has gotten worse.

 

[NYShoreGuy]

Our Health Insurance broker shared some interesting 2020 stats today:

* For 2020, the average weight gain for U.S. population will be 8lb/person.
* Pediatric visits are down 50-60% this year
* Adult primary care visits are down 40-50%.
* Mental health visits are down 20-30%, but demand is up 40-50%.
* Chronic condition compliance is down by 30-40%.
* There has been an increase of antidepressant, anti-anxiety and anti-insomnia prescriptions
* Almost 80% of those prescriptions are new.

Essentially, an unhealthy population has gotten worse.

But did the broker talk about this?

 

[SPK145]

I pay $4K per month for medical, dental, and vision insurance. Good plan, not a great plan.

 

[Section112]

But did the broker talk about this?

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I pay $2,800 per month for so so family coverage (no dental or eye). It hurts but many small companies like mine have taken a hit to make sure we continue to cover our employees. I know of a number of small companies doing that. The liberal Seattle CEO should stop grandstanding because real business people are supporting their employees and do give a crap.

The reality is the workforce has also shrunk so many folks are working as consultants now or underemployed and that has also lowered the insurance provided by companies. It's way more complicated than just waahh companies aren't paying health insurance any more. Lots needs to be done to improve the situation but if Govt takes over you can be sure it will go to shit. Why do so many Canadians come across the border to get procedures done if their system is so great?

 

[Pirata]

But did the broker talk about this?

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That post confirms you have no clue about what it takes to run a business.

Feel free to do some research on the decline of defined retirement plans. Lots of actuaries looking for work now.

These trends are largely due to the pressures of government and not the inclinations of owners.

 

[SHUSA]

Our Health Insurance broker shared some interesting 2020 stats today:

* For 2020, the average weight gain for U.S. population will be 8lb/person.
* Pediatric visits are down 50-60% this year
* Adult primary care visits are down 40-50%.
* Mental health visits are down 20-30%, but demand is up 40-50%.
* Chronic condition compliance is down by 30-40%.
* There has been an increase of antidepressant, anti-anxiety and anti-insomnia prescriptions
* Almost 80% of those prescriptions are new.

Essentially, an unhealthy population has gotten worse.

throw some medicine at it!

 

[SHUSA]

I pay $4K per month for medical, dental, and vision insurance. Good plan, not a great plan.

how many dependents? at $4k a month you should have the best plan of all time.

 

[SPK145]

how many dependents? at $4k a month you should have the best plan of all time.

Family coverage, so it doesn’t matter how many dependents. It’s my own 1 employee company. The Obamacare exchanges provide worse insurance for similar amount.

 

[NYShoreGuy]

Family coverage, so it doesn’t matter how many dependents. It’s my own 1 employee company. The Obamacare exchanges provide worse insurance for similar amount.

What do you think about getcoveredNJ?

 

[NYShoreGuy]

That post confirms you have no clue about what it takes to run a business.

Feel free to do some research on the decline of defined retirement plans. Lots of actuaries looking for work now.

These trends are largely due to the pressures of government and not the inclinations of owners.

Nah I am good, thanks.

 

[SHUSA]

Family coverage, so it doesn’t matter how many dependents. It’s my own 1 employee company. The Obamacare exchanges provide worse insurance for similar amount.

through gov i would normally be paying 400-500 a month for Single person, id say its definitely better than so so. If family increases that 8x then maybe ill just not have kids lol.

 

[Merge]

That post confirms you have no clue about what it takes to run a business.

Feel free to do some research on the decline of defined retirement plans. Lots of actuaries looking for work now.

These trends are largely due to the pressures of government and not the inclinations of owners.

To clarify, are you saying that business owners want to offer pensions but are no longer offering them because of government pressures?

 

[Merge]

I pay $2,800 per month for so so family coverage (no dental or eye). It hurts but many small companies like mine have taken a hit to make sure we continue to cover our employees. I know of a number of small companies doing that.

Agree. In my opinion, we would be better off if we could find a way to separate insurance coverage from employment.

 

[HALL85]

Agree. In my opinion, we would be better off if we could find a way to separate insurance coverage from employment.

Disagree. Our employees pay 5% of the premium. It’s a great retention tool.

 

[SPK145]

What do you think about getcoveredNJ?

Pretty much just a front door to the exchange plans. Lower premiums in exchange for much higher deductibles. In most scenarios, would be more expensive for us. Unfortunately we are at the age where we are not eligible for Medicare yet but have high medical usage.

Now if Biden can get Medicare down to 60...............

 

[NYShoreGuy]

Disagree. Our employees pay 5% of the premium. It’s a great retention tool.

Thats your company and you are in health services not all is created equal

 

[Merge]

Disagree. Our employees pay 5% of the premium. It’s a great retention tool.

Glad it works for you, but 5% is rare. Somewhere between 20-30% for most and premium increases typically rise faster than wages, so it’s not really sustainable.

 

[NYShoreGuy]

To clarify, are you saying that business owners want to offer pensions but are no longer offering them because of government pressures?

For the most part pension programs are long gone outside of education, law enforcement industries, i know niche unions still have them...but most larger spots that did have it no longer do....to me though, i can live with that...what disgusts me is places that can afford more FTE workforce and only hire at 26 to 32 week contract positions and offer the ACA supplement as something these hires can elect into...i like to call them the freelance mercenaries

 

[HALL85]

Glad it works for you, but 5% is rare. Somewhere between 20-30% for most and premium increases typically rise faster than wages, so it’s not really sustainable.

It’s not sustainable if we don’t take meaningful actions to reduce the actual costs and consumption of healthcare.

 

[HALL85]

For the most part pension programs are long gone outside of education, law enforcement industries, i know niche unions still have them...but most larger spots that did have it no longer do....to me though, i can live with that...what disgusts me is places that can afford more FTE workforce and only hire at 26 to 32 week contract positions and offer the ACA supplement as something these hires can elect into...i like to call them the freelance mercenaries

But don’t some people prefer being a contractor to give them the flexibility to pursue additional opportunities and/or draft off their spouses healthcare?

 

[Merge]

But don’t some people prefer being a contractor to give them the flexibility to pursue additional opportunities and/or draft off their spouses healthcare?

Many people would prefer the opportunity to take contractor roles or focus their efforts on more entrepreneurial ventures but don’t because they rely on an employer for healthcare.

Another reason why we would be better if we did not tie healthcare to employment.

 

[HALL85]

Many people would prefer the opportunity to take contractor roles or focus their efforts on more entrepreneurial ventures but don’t because they rely on an employer for healthcare.

Another reason why we would be better if we did not tie healthcare to employment.

So they can purchase it on the open market. A contractor should be making more working on their own to afford it or if not they would qualify for a subsidy.

 

[Pirata]

To clarify, are you saying that business owners want to offer pensions but are no longer offering them because of government pressures?

My post was primarily a response to NY Shore's epiphanic post that fewer people have employer paid health plans. I should add, also that it was a post that sidetracked the OP's point and was colored by his wont to take swipes at corporations.

Defined plans was another example of things that employees no longer provided to the degree they used to.

I said "trends" referring to both health care and pension plans.

Regarding the government's affect on private pensions, several tax acts passed in the 80s and 90s and beyond are attributed to the decline. They increase the volatility and funding requirements and reduced the amortization period drastically.

I can't recall the precise names of the Acts. There was recent one on mid back around 2005, The Pension Protection Act. I think that was the one that put in the funding requirement.

Your words stating that I said "business owners want to offer Pension plans" is a matter of you projecting. I did not say that. I simple suggested pension plans have been on the decline and government played a role in that.

 

[Merge]

So they can purchase it on the open market. A contractor should be making more working on their own to afford it or if not they would qualify for a subsidy.

Unfortunately the far majority of people would not be able to afford to do that. The point is that "job-lock" may be good for employers for retention but is probably not good for the public in general and limits entrepreneurship/innovation.

 

[HALL85]

Unfortunately the far majority of people would not be able to afford to do that. The point is that "job-lock" may be good for employers for retention but is probably not good for the public in general and limits entrepreneurship/innovation.

All opinion. If this has been such a problem, why do we still see such great innovation in this country?

Health benefits are a compensation tool that companies use to attract and retain talent. As I've said in other posts...health insurance only focuses on how we pay....it has very little to do with what drives our healthcare costs up.

 

[Merge]

Your words stating that I said "business owners want to offer Pension plans" is a matter of you projecting. I did not say that. I simple suggested pension plans have been on the decline and government played a role in that.

Wasn't projecting. I was asking for clarification of what you meant when you said "against the inclinations of owners". The laws which were impactful to pensions were lobbied by private businesses. The reduction of pensions in favor of defined contribution plans was by design because that is what business owners wanted.

 

[Merge]

All opinion.

There are a ton of studies on this topic.

If this has been such a problem, why do we still see such great innovation in this country?

That's like saying that we can't be better because we have been good.

Health benefits are a compensation tool that companies use to attract and retain talent. As I've said in other posts...health insurance only focuses on how we pay....it has very little to do with what drives our healthcare costs up.

Right, but I was originally responding to 112 when he said that "It hurts but many small companies like mine have taken a hit to make sure we continue to cover our employees. I know of a number of small companies doing that. "

Small companies shouldn't have to take a hit because healthcare costs are increasing.
Small companies would be better off if we did not tie health benefits to employment.

 

[HALL85]

There are a ton of studies on this topic.



That's like saying that we can't be better because we have been good.



Right, but I was originally responding to 112 when he said that "It hurts but many small companies like mine have taken a hit to make sure we continue to cover our employees. I know of a number of small companies doing that. "

Small companies shouldn't have to take a hit because healthcare costs are increasing.
Small companies would be better off if we did not tie health benefits to employment.

You made a broad statement that it stifles innovation with no proof. Compare our history of innovation to that of countries that have govenment care.

Small companies are not mandated to healthcare insurance. They can offer a stipend instead, so their employees can go shop the plan on the exchange or increase employee contribution, etc.

 

[Merge]

You made a broad statement that it stifles innovation with no proof.

https://www.hbs.edu/faculty/Publication%20Files/16-144_d9ce8326-eeaa-4650-a8af-6ff03c3f7e77.pdf

https://www.ucd.ie/geary/static/publications/workingpapers/gearywp200939.pdf

Compare our history of innovation to that of countries that have govenment care.

It's unrelated though. I am sure you wouldn't say that our successes in America are because of employer subsidized health insurance. There is a lot of evidence that employer sponsored care limits entrepreneurship, and that entrepreneurship drives innovation.

Small companies are not mandated to healthcare insurance. They can offer a stipend instead, so their employees can go shop the plan on the exchange or increase employee contribution, etc.

Hear that @Section112 ? 85 thinks you should just drop your insurance coverage and offer a stipend instead.

 

[SHUSA]

Unfortunately the far majority of people would not be able to afford to do that. The point is that "job-lock" may be good for employers for retention but is probably not good for the public in general and limits entrepreneurship/innovation.

100000% true

 

[NYShoreGuy]

Neiman Marcus CEO may cut pricey perk for top execs: report

Neiman Marcus may ax a controversial health insurance plan for its chief executive and his top officers — just days after the lavish perk was exposed in an exclusive report by The Post. Chief…

nypost.com

 

[HALL85]

https://www.hbs.edu/faculty/Publication%20Files/16-144_d9ce8326-eeaa-4650-a8af-6ff03c3f7e77.pdf

https://www.ucd.ie/geary/static/publications/workingpapers/gearywp200939.pdf

It's unrelated though. I am sure you wouldn't say that our successes in America are because of employer subsidized health insurance. There is a lot of evidence that employer sponsored care limits entrepreneurship, and that entrepreneurship drives innovation.



Hear that @Section112 ? 85 thinks you should just drop your insurance coverage and offer a stipend instead.

The one study compares child care to start-up businesses. Innovation doesn't occur in large companies? You can pick and choose articles to support your POV, but IMO it doesn't have a material effect based on results.

 

[Pirata]

The laws which were impactful to pensions were lobbied by private businesses.

Are you saying that private business lobbied for:

• The Tax Equity and Fiscal Responsibility Act (1982)
• The Retirement Equity Act (1984)
• The Tax Reform Act and Single Employer Pension Plan (1986)

 

[Section112]

Hear that @Section112 ? 85 thinks you should just drop your insurance coverage and offer a stipend instead.
[/QUOTE]
Lots of ways to skin a cat (sorry cat lovers). I liked what Hall85 said previously that a small company providing insurance is a very good retention tool. That is what we found and we are clear with our employees how much we spend on them each year in total comp which includes what we pay for their insurance premiums and profit sharing so they can see the outlay. For a small organization, I think we do a good job of offering those perks (HC insurance and profit sharing based on our companies profitability) and it motivates our employees to produce. I understand all small companies cannot do that but it helps in a lot of ways if you can. We also contribute 5% of our profits to charity each year no matter what our year looks like and our employees and partners enjoy and take pride in that too. I do not blame some small businesses that are struggling to get by who cannot offer HC insurance. Most business owners value their employees and want to help them however they can. But some just can't do it due to the expense. And state and government mandates and over-regulation (depending on their industry) and taxation can cripple small business profits quickly. State tax boards have gotten overly aggressive in the last five years and are always after small companies creating tons of unnecessary paperwork and time spent for small companies like mine. It's a lot to manage and puts small businesses out of business. It is not easy running a small business and so few administrations in the past 25 years paid little or no attention.

 

[Merge]

The one study compares child care to start-up businesses. Innovation doesn't occur in large companies? You can pick and choose articles to support your POV, but IMO it doesn't have a material effect based on results.

I didn't suggest innovation doesn't occur elsewhere. I said entrepreneurship is negatively impacted because of people being tied to a job for health coverage and that entrepreneurship drives innovation.

I'm arguing that the environment would be better for workers and entrepreneurs if their health insurance was not tied to an employer.

 

[Merge]

Are you saying that private business lobbied for:

• The Tax Equity and Fiscal Responsibility Act (1982)
• The Retirement Equity Act (1984)
• The Tax Reform Act and Single Employer Pension Plan (1986)

I am saying that businesses wanted an alternative to pensions because they were expensive, and relied on market performance which was unpredictable and employers carried the risk. They lobbied congress in the 70's for alternatives and that is how 401(k)s were created.

There have been rule changes for pensions along the way, but the reason they were/are disappearing is because of the uncertainties and company desires to manage that risk.

 

[HALL85]

I didn't suggest innovation doesn't occur elsewhere. I said entrepreneurship is negatively impacted because of people being tied to a job for health coverage and that entrepreneurship drives innovation.

I'm arguing that the environment would be better for workers and entrepreneurs if their health insurance was not tied to an employer.

I would think that most people that get their healthcare through their employer would prefer that over a government run health plan.

And Entrepeneurship is not the only driver for innovation.

 

[Merge]

I would think that most people that get their healthcare through their employer would prefer that over a government run health plan.

And Entrepeneurship is not the only driver for innovation.

I didn't say it needs to be government run, and also never said entrepreneurship is the only driver of innovation.

 

[HALL85]

I didn't say it needs to be government run, and also never said entrepreneurship is the only driver of innovation.

So what are you saying???

 

[Merge]

So what are you saying???

In my opinion, we would be better off if we could find a way to separate insurance coverage from employment.