Originally Posted by FLM2
We'll have to agree to disagree on the group aspects-my small groups haven't had those types of increases the past two years and I seen the availability of group health insurance as a positive as it gives people an incentive to work as well as an ability for businesses to attract top people. And that is based on many years working in Silicon Valley (before entering the insurance business) as well as the past 11 years doing health insurance.
Yes, we will have to agree to disagree.
The national average for group increases is above 10% and has been for at least the past few years if I remember correctly.
An incentive to work? Only because there is no good alternative. That in itself is a major issue for our economy. Getting paid should be the main economic incentive to work. "Not dying of disease" should not be the economic incentive to work... that is a MAJOR economic issue.
I dont care about silicon valley. Ive worked with small business owners here in the real world (all over the US) for over a decade. (I even have one or two with locations in Silicon Valley since that seems to mean something to you... LOL)
Many of those small business owners have made more than most who work in silicon valley and have created many more jobs as well. I advise them on not only group insurance, but key-employee benefits and retirement plans too.
Group Health takes up more time and cost vs. any other benefit. The loss of productivity due to it is enormous.
Take away group health and companies would have to compete solely on the merits of their mission, culture, and SALARY.
Take away group health and employees have less to worry about when they are considering changing jobs. "Fear of new Benefits" is one of the top reasons people stay at jobs they hate.
And the #1 reason for people not starting new businesses is the need for group benefits because of medical reasons.
Take away group health and our economy would explode. Many economists are starting to wake up to that realization (those of the Austrian mindset too, not the Keynesian libs)
. Warren Buffet and Charlie Munger recently made statements very similar to what I just expressed above.
Oh, then there are the actuarial reasons related to providing health insurance in this country.