Backdoor to socialized medicine?

[Coronita]

[quote=briansd1][quote=flu]

If it is a benefit, how does one measure how much of it is used for which it to be taxable benefit *for the recipient of the benefit*?[/quote]

You measure it by what it’s costing the employer to provide the benefit.

For example you employer may pay $2000/mo in premium for your family’s health care coverage. That’s $2,000 in compensation to you.

Currently because the benefit is untaxed, the value to you is $2,857 = 2000/(1-.30) Assuming your tax rate is .30.

Assuming you could buy the same coverage on your own, you would be indifferent if the employer provided you the $2,000 in health insurance plan or $2,857 in additional salary.[/quote]

Are you familiar with group health insurance costs for small employers, out of curiosity?

Specially,

(a)suppose you had a company A of 60 people, with half being 45-50 years old, some perhaps with pre-existing condition (lets say 5 are considered obese 5 have heart condition, and 1 with ongoing cancer treatment) and the remaining being under that age.

(b)suppose you had company B of 60 people, with all employees being 25 years old.

Want to take a guess on what sort of group premiums company A would be paying versus company B?

Still think the health “benefit” would be the same at the same dollar amount? Still think if the employers match the benefits to be competitive in employment, that the premiums paid would be the same? Do you still think employees of company A should be taxed more than company b for their health benefit? What do you think this does to Company A’s competitiveness in retaining talent versus Company B?

[briansd1]

Company A likely pays more than Company B.

That’s the nature of the private market.

Older people cost more and pay more. Thus the older employees get compensated higher by their employers who pay higher health insurance premiums.

However, under the new legislation, with insurance exchanges that employers could join, Company A would pay the same as Company B.

This Health Care Bill creates a level playing field.

[briansd1]

Company A likely pays more than Company B.

That’s the nature of the private market.

Older people cost more and pay more. Thus the older employees get compensated higher by their employers who pay higher health insurance premiums.

However, under the new legislation, with insurance exchanges that employers could join, Company A would pay the same as Company B.

This Health Care Bill creates a level playing field.

[briansd1]

Company A likely pays more than Company B.

That’s the nature of the private market.

Older people cost more and pay more. Thus the older employees get compensated higher by their employers who pay higher health insurance premiums.

However, under the new legislation, with insurance exchanges that employers could join, Company A would pay the same as Company B.

This Health Care Bill creates a level playing field.

[briansd1]

Company A likely pays more than Company B.

That’s the nature of the private market.

Older people cost more and pay more. Thus the older employees get compensated higher by their employers who pay higher health insurance premiums.

However, under the new legislation, with insurance exchanges that employers could join, Company A would pay the same as Company B.

This Health Care Bill creates a level playing field.

[briansd1]

Company A likely pays more than Company B.

That’s the nature of the private market.

Older people cost more and pay more. Thus the older employees get compensated higher by their employers who pay higher health insurance premiums.

However, under the new legislation, with insurance exchanges that employers could join, Company A would pay the same as Company B.

This Health Care Bill creates a level playing field.

[Coronita]

[quote=briansd1]Company A likely pays more than Company B.

That’s the nature of the private market.

Older people cost more and pay more. Thus the older employees get compensated higher by their employers who pay higher health insurance premiums.

However, under the new legislation, with insurance exchanges that employers could join, Company A would pay the same as Company B.

This Health Care Bill creates a level playing field.[/quote]

Can you please explain to me how, in the absence of a government sponsored health insurance, participation in an insurance exchange by company A would guarantee it would be able to find an identical group policy to company B at the same price?

[Coronita]

[quote=briansd1]Company A likely pays more than Company B.

That’s the nature of the private market.

Older people cost more and pay more. Thus the older employees get compensated higher by their employers who pay higher health insurance premiums.

However, under the new legislation, with insurance exchanges that employers could join, Company A would pay the same as Company B.

This Health Care Bill creates a level playing field.[/quote]

Can you please explain to me how, in the absence of a government sponsored health insurance, participation in an insurance exchange by company A would guarantee it would be able to find an identical group policy to company B at the same price?

[Coronita]

[quote=briansd1]Company A likely pays more than Company B.

That’s the nature of the private market.

Older people cost more and pay more. Thus the older employees get compensated higher by their employers who pay higher health insurance premiums.

However, under the new legislation, with insurance exchanges that employers could join, Company A would pay the same as Company B.

This Health Care Bill creates a level playing field.[/quote]

Can you please explain to me how, in the absence of a government sponsored health insurance, participation in an insurance exchange by company A would guarantee it would be able to find an identical group policy to company B at the same price?

[Coronita]

[quote=briansd1]Company A likely pays more than Company B.

That’s the nature of the private market.

Older people cost more and pay more. Thus the older employees get compensated higher by their employers who pay higher health insurance premiums.

However, under the new legislation, with insurance exchanges that employers could join, Company A would pay the same as Company B.

This Health Care Bill creates a level playing field.[/quote]

Can you please explain to me how, in the absence of a government sponsored health insurance, participation in an insurance exchange by company A would guarantee it would be able to find an identical group policy to company B at the same price?

[Coronita]

[quote=briansd1]Company A likely pays more than Company B.

That’s the nature of the private market.

Older people cost more and pay more. Thus the older employees get compensated higher by their employers who pay higher health insurance premiums.

However, under the new legislation, with insurance exchanges that employers could join, Company A would pay the same as Company B.

This Health Care Bill creates a level playing field.[/quote]

Can you please explain to me how, in the absence of a government sponsored health insurance, participation in an insurance exchange by company A would guarantee it would be able to find an identical group policy to company B at the same price?

[briansd1]

[quote=flu]
Can you please explain to me how, in the absence of a government sponsored health insurance, participation in an insurance exchange by company A would guarantee it would be able to find an identical group policy to company B at the same price?[/quote]

There is no guarantee. Again that a feature of private markets.

But the premiums would be more equalized. The demographics in the exchange would more closely match the demographics of the workforce in general. So a company with an older workforce would benefit from being rated through the exchange.

[briansd1]

[quote=flu]
Can you please explain to me how, in the absence of a government sponsored health insurance, participation in an insurance exchange by company A would guarantee it would be able to find an identical group policy to company B at the same price?[/quote]

There is no guarantee. Again that a feature of private markets.

But the premiums would be more equalized. The demographics in the exchange would more closely match the demographics of the workforce in general. So a company with an older workforce would benefit from being rated through the exchange.

[briansd1]

[quote=flu]
Can you please explain to me how, in the absence of a government sponsored health insurance, participation in an insurance exchange by company A would guarantee it would be able to find an identical group policy to company B at the same price?[/quote]

There is no guarantee. Again that a feature of private markets.

But the premiums would be more equalized. The demographics in the exchange would more closely match the demographics of the workforce in general. So a company with an older workforce would benefit from being rated through the exchange.

[briansd1]

[quote=flu]
Can you please explain to me how, in the absence of a government sponsored health insurance, participation in an insurance exchange by company A would guarantee it would be able to find an identical group policy to company B at the same price?[/quote]

There is no guarantee. Again that a feature of private markets.

But the premiums would be more equalized. The demographics in the exchange would more closely match the demographics of the workforce in general. So a company with an older workforce would benefit from being rated through the exchange.

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