"Free" Covid Tests!
With much fanfare, the Biden administration announced that health insurance companies must provide “free” covid tests to all of their clients.?Let’s put aside the supply chain challenges regarding tests for another day.?Apparently, the government demands something and poof, it magically appears.?
The worst time of the year for a business owner is the health insurance renewal.?Here’s how it goes:
·????????Your insurance broker comes in, says they went to the market to get you a better rate.?The good news is your increase went from 15% to 7%.?Of course, the benefits have been “tweaked.”?Translation: the deductible is higher, copays are higher, and prescriptions cost more unless you order your prescriptions on Tuesdays via an app between 8 and 9 pm.
·????????You do some quick math: if you keep employee contributions the same, your business (which remember, if you are the owner, is your income) will pay hundreds of thousands of dollars more for health insurance.?You meet with your HR and finance people and figure out how to split the increase with your employees.
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·????????You tell the employees about their new plan.?They think you’re the bad guy because their benefits decreased and they are paying more.?It’s your fault.?You are miserable because, at least for me, health insurance is a top 10 expense and no one feels good about it.?It is an expense that no one feels provides any value.
Here’s the magic question: Who the $*#&@) do you think is going to pay for these “free” covid tests??Let’s say each test costs the insurance company $10.?They have to supply 8 per person per month.?That’s $80 per month for every person on your health plan.?Let’s say you have 100 lives on your insurance.?$80 per life x 100 lives = $8,000 PER MONTH.?And that’s for a relatively small plan.?Do you think the insurance companies are going to eat that cost??If you do, please let me know what substance you are enjoying.
When health insurance renewal time comes, expect a significant increase.?Like everything else over the last 2 years, blame covid.?
RETIRED - Channel Sales Manager
3 年No employers and employees will pay more. Except for those who don’t work. They will be free for them.
Client Executive
3 年So very true, Brian!
Label Systems Consultant
3 年This is so true! All the people who think that free (health care, education, etc) is a good idea needed to realize that someone always has to pay - one way or another.
Marketing/Branding Consultant, MBA
3 年Good article. Everything is free until somebody has to pay for it.
Vice President of Sales North America-Grafisk Maskinfabrik
3 年The entire administration is off their rockers!