A New Study Shows Why Employer Provided Health Insurance Is Awful


More than half of the people in the United
States get their health insurance coverage from their employer and most of them aren’t
happy with that coverage. A new study came out that helps explain why
your coverage from your employer is so awful and I have Farron Cousins from Trial Lawyer
Magazine with me now to tell us about it. Farron, this story, it was really, it’s still
under the radar. Propublica did a story on it. NPR did an investigation on it and right now
people are complaining that this new, this new shift, the new Obamacare shift, the new
coverage issues, they feel like they’re getting a lot less and they’re blaming it on the legislation
to some degree. But really when you look at this story, it’s
really about the same old thing. The people at the top trying to squeeze as
much money as they can out of the American consumer. And what they do, what this investigations
found is that a lot of companies out there, their HR departments hire these insurance
brokers. They’re not with the health insurance company. They’re not with the company buying the insurance. It’s essentially this group of of middlemen
and what they do is they work with the health insurance company and say, all right, you
let us know what plans you have. We’ll go sell them to the employer. But what we didn’t know until now is that
the insurance companies and these brokers had worked out deals. These brokers in many cases get a percentage
of the plans they sell and they get that as long as the employer goes with them. Let’s back up. First of all, we would expect the American,
you know we, we expect that salespeople get commissions. We expect all that. This is different though
It is. This is where you have you, you, you go to
the HR Department or whoever it is that’s making the decision. You say, look, we have two options for you. Option A and option B and they don’t tell
him about options C because option C might give the best coverage. It might do away with, it might do away with
a lot of the problems that A and B have, but the broker who, who really has a conflict
of interest here. Clear conflict of interest says, you know
what we think you ought to go with, with program A because program A, the broker is making
a lot of money that he’s not disclosing why he doesn’t talk about C. He talks about A,
because that’s where he makes the most money. That’s where he gets his trips around the
world is, you know, his voyages to Europe. This is something that there, there’s no regulation
here. We have brokers that are out there operating
and people working in companies don’t even know why their insurance coverage has gone
from bad to worse. Well, and it’s interesting too that you brought
up these incentives they get, not just the commission. You understand if somebody sells and they
get a commission, whatever, but, but they’re also offering these bonuses. Sometimes for a group of brokers, you can
get a $150,000 bonus, but it’s not the health insurance company that’s paying that. Those bonuses, these trips, you know, they
had one offer go play baseball with a major league Hall of Famer. That’s actually built into the price of those
insurance plans. So the employer and the employees who buy
the plans, they’re the ones paying for the bonuses. It’s not coming out of the health insurance
company’s pocket, not coming out of the broker’s pocket. We, the people who have that insurance paid
that as an addition to a premium. The problem is so bad in the United States
that they’ve actually had to come, there are actually organizations that have been put
together where they’re saying it’s, it’s called Health Rosetta. Health Rosetta is an organization that says,
look, there are about a hundred thousand brokers in the country and all those 100,000 brokers
should be required to disclose to the HR or to the company. We have these other plans and they’re better
for your employees, but I don’t make as much money. So this organization, Health Rosetta is saying,
I mean the numbers are staggering. I think there’s only a hundred, maybe 110,
111 organizations that, that follow this Rosetta plan. And that’s out of 100,000 brokers in the country. Why? Because there simply is no transparency. There’s no regulation to demand transparency. And because of that, the problem for the average
person, the employee is the coverage is getting much less. And the, the, the costs just to have the coverage
is increasing. Right, and this Rosetta group, what they do
is they’ve said, listen, we don’t take percentages, we don’t take commissions. It’s a flat fee. We do our job for you. We’re going to do the best we can for you. Nobody is giving us additional money. And that’s what makes the difference. And with these plans that we currently have
now, the up sells. What they’ll do in a lot of cases too, is
charge for a more expensive plan that covers things that there’s no way anybody in your
company could ever possibly need. Okay. But they sell it as, well just in case you
know what, if you have an employee and this happens, then your whole plan gets blown up. So by this one with this extra covering. Okay, so here’s what we tell people. Here’s what’s important. We know Health Net of California is doing
this. We know emblem of EmblemHealth in New York
is doing this. We know that blue cross, blue, blue, blue
cross blue shield is doing this, the blues are doing this. If you, if you have a human source HR department,
I think the thing to do is to go to them and say, look, is this taking place? Because the HR department, most of them don’t
even understand how this works. The, I mean you know they have training in
HR but they don’t have training to understand this scam. And the scam if, if you, look, it’s impossible
for me to believe that if you tell a broker, if you sell this, this, this item that is
substandard by all, by all means it’s substandards. If you sell this, we’re going to give you,
you can make as much as $150,000. these bonuses run up to where the, the entity is paying
out $150,000 in kind of extra bonuses for selling this kind of stuff. And so it, it, it, it’s impossible for me
to believe Farron that in that, in that environment that you don’t have brokers that are taking
advantage of this and the HR department really doesn’t even know about it.

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48 thoughts on “A New Study Shows Why Employer Provided Health Insurance Is Awful

  1. Even worse for contractors… Staffing companies don't even try… it's 600 a month just for me working as a contractor.

  2. You didn’t need a study to prove this. In the last 3 years our premiums have gone from $9000 per year to $15250. Less benefits. Higher deductibles and copays. Complete corruption.

  3. It's like the government lobbyist, the lobbyist gets the congress to drop regulation, which make money for the company and get the lobbyist a reward of money or all paid vacation or both and the American people get screwed, this seem to be the American business practice, all over.

  4. My wife had coverage through my employer's plan. She died from a heart attack almost two years ago, and the hospital tried to stick me with a bill for HALF A MILLION DOLLARS. My benefits cost me thousands per year, and I still have to pay through the node for doctor visits, prescriptions, and hospital visits. MEDICARE FOR ALL!

  5. Well, there you go. Corporate America always wins in the end. If a national healthcare system was as good as the VA coverage I have I think we would not be hearing much complaints from anyone.

  6. That's what happens when you let capitalism rule and force people to pay medical insurance. Everything is for sale in America. Your country is socially primitive on the subject of healthcare given that healthcare is regarded as a service and commodity.

  7. Just finished making some green juice and seen this…yes paying 500 bucks a month for premiums and im making green juice.any questions? ..

  8. One of the problems is private insurance companies went from being nonprofit organizations, when they first started, to becoming for profit and publicly traded companies . Greed and maximizing profits lead to people's health taking a backseat to investor interests.

  9. "The people at the top trying to squeeze as much money as they can out of the American consumer"…. That is the most succinct description of the American heallthcare system I have seen.

  10. Didn't they buy up and absorb the competition, too? Isn't there only like 2 or 3 companies that own all of them? Like almost every service and most goods in this country are now monopolized. Why are they allowing it? Was it FDR or Eisenhower that broke them up back in the day for many good reasons? Just like Comcast, and 3 companies own all the airlines, no competition, can jack prices and don't care about the customers or quality…

  11. You get employer health ins because it's better than no insurance and cheaper than private insurance. And you still have to file bankruptcy for medical bills. How can this not be criminal?

  12. Hey this is working just like the REAGAN REVOLUTION intended. It,s an industry that provides jobs. Shit system is the corruption and greed built in!!! It used to kind of work but the attitude lets get out of their way just allows the grifting. They know best not government. Medicare for all would explode new jobs!! It would be compleatly different but much better.

  13. My company's plan is 500.00 a month. No doctor in my large city will accept it. We can not continue to be treated this way.

  14. Why is CEO not getting lock up ,people your CEO is fk you. Representation of a fk up government putting the rich on welfare.

  15. Scrap it. Free healthcare for all. It is 1 of the few functions that work better nationally. Why? Because you have far too many salaries in the middle. A $500 visit to the doctor in the US is $50 or less in other 1st world countries.

  16. My employer here in Las Vegas switched our health insurance as of 1/1/2019 from "decent" coverage to completely horrible, hideous health insurance. I'm talking about a $4,000.00 deductible for just me. They claim that it's "cheaper" deduction from your pay, but I would be more than happy to pay for the old coverage which was a difference of approximately 56.00 monthly. You really have no choice, because if you cancel your insurance with your employer, you'll get penalized by the IRS at the end of the year. It's a horrible situation.

  17. P.S. Even the representative from the insurance company admitted it was really bad coverge. By the way, the new coverage is "Anthem Blue Cross/Blue Shield." It is absolutely criminal for employers to do this. People are getting kick-backs at the expense of life and death. I make around 32,000 yearly……how can a person afford 100 to 150 dollars in co-pays, plus pay out your ass in prescription costs…….until you reach your $4,000.00 deductible? It just doesn't make sense. This is corruption at it's finest, folks.

  18. Souložit! These greedy bastards killed my cousin last year, as he could not afford medical care. Full-time worker since he was 18, and he died in his 50s…čubčí syn!

  19. My employer provided health insurance is god aweful. A guy at work cut his finger on a hedge trimmer and rushed to the ER.
    Even with our insurance it cost him $1800 out of pocket.
    Back in 1980 when I got my first "real job" the insurance was paid entirely by my employer and when I went to ER it cost me nothing.

  20. Hi.
    I live in the capitalist country of Norway.
    Here, we have a public healthcare system with private insurers as an option for the stinking rich.
    Just two weeks ago, I was at a public hospital to get a check up for my bad stomach.
    Was I billed into bankruptcy because of it?
    Nah!
    Why is that?
    And how is the American healthcare system the best in the world in any way?

  21. All the money is going to the middleman! With a $6,500 deductible I wouldn’t dream of going to the doctor. So how is that healthcare? How is that promoting preventive healthcare and the ability to properly care for yourself. Get the insurance industry out of healthcare.

  22. I can afford insurance but I can't afford healthcare.

    The ONLY answer is single-payer healthcare/ Medicare for ALL. And not this "we'll get there but let's improve ACA for now" 🐂💩. With the push back from insurance companies, big pharma and huge corporations, it's going to take quite a while to "get there" anyway, so let's start pushing for Medicare for all NOW!

  23. According to a 2017 report by the U.S. Government Accountability Office, "of the 85 violent extremist incidents that resulted in death since September 12, 2001, far right wing violent extremist groups were responsible for 62 (73%) while radical Islamist violent extremists were responsible for 23 (27%)".
    Banning Muslims and trying to build a wall but letting white supremacists commit 73% of terrorist attacks since 9.12.2001 seems like an issue.

  24. food for thought….all the law makers telling america that YOU can't have medicare for all …ALL have medical coverage paid for by ALL of americans…

  25. Employer-sponsored insurance is a fucking joke. Here in Australia it just doesn't exist. Quit your job and you still have insurance. Talking private insurance and not just Medicare.

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