Always great insight from Mr. Bertaut!

Bertaut On Healthcare

Today, almost all of the people in the U.S. who have private health insurance get it through their job.  Ever wonder why that is?  Simply put, there are two big reasons:

1. Health insurance is (because healthCARE is) pretty expensive.  Employers are nice enough to subsidize coverage for their employees, often to the tune of 80 or 90% of the premiums required for the employee.  That makes it affordable.

2. Under Federal Law, if an employer can get 75% of his employees to join a health insurance pool, and he agrees to pay at least 50% of the premiums for them, then the entire group qualifies for what’s called GUARANTEED ISSUE coverage.  In other words, everybody gets insurance in the group, no matter how sick they are, thanks to something called the “Law of Large Numbers”.    As the insurance pool gets more people in it, the costs smooth out on…

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