How attractive is health insurance to an entrepreneur? (how much, deductible)

[cgregor]

I live in a state that is working toward a tax-based universal, affordable, accessible and equitable health care system for all, such as exists in all the other First-World countries. It will be provided regardless of pre-existing conditions, have no deductibles, have a standard co-pay for both services and medications, and cover all household members even if they lose their jobs for any reason. One estimate was that it would take a 14% payroll tax to cover all state residents not covered by Medicare, Medicaid or Tri-Care (for which it would be the secondary insurer).

One of the arguments supporting it is that there are quite a few people ready to quit their job and start their own business, but they are held back by the matter of insurance costs for both themselves and their employees.

So, I'm curious as to how many employers or would-be entrepreneurs would pull up their roots and move to a state that offers such insurance coverage for a 14% payroll tax. If you're one of those people, let me know.

[jbunniii]

I wouldn't move just for health insurance unless I was ill and couldn't get coverage in my state. A 14% payroll tax sounds insanely high: Medicare is what, 1.5%? Is there a cap or is it applied to all income?

[cgregor]

jbunniii, I was hospitalized for thirty-six hours to be treated for pulmonary embolism and fortunately was aware that being treated as an outpatient meant I, not Medicare, would have to pay the bill. Since Medicare pays only 80%, the hospital was going for the gold. Had I not known that, I would not have known to protest the doc's decision to keep me for three days.

As it was, the total bill was $11,000, which is 33% of my annual income That's more than twice as high as a 14% payroll tax. Up until that time I was about as healthy as a horse; my last hospitalization had been almost forty years previously. I suppose it depends on how much peace of mind is produced for the price one pays for coverage. I never would have imagined that I would ever be sick to the tune of one-third of my income, and I would have been more than happy to know that 14% would be a shield. Others of course will be of a different mind.

If you're interested in following it closely, the state is Vermont and the legislature starts dealing with your questions the first week of January.

[dburbs1975]

they wanted to keep you in the hospital because people with pulmonary embolism die, and they wanted to monitor you.

not because they wanted your "gold." The doctors don't get much more than a sliver of it, anyway.