Published: July 19, 2006 06:49 pm         

Letter to the editor for July 19, 2006

July 19, 2006 — A solution to no health insurance

A lack of health insurance is a growing problem nationwide, across Texas and in Rockwall County too. About one out of eight business owners in Rockwall County readily discloses they have no health insurance for themselves or their employees.

The excuse is always, “It’s too expensive!” I agree that comprehensive major medical plans are expensive; however, “no health insurance” can become a self-written prescription for a huge medical expenditure if not medical induced personal bankruptcy!

A specified benefit health plan is a much lower cost alternative to a major medical plan that should be seriously considered by anyone who does not currently have health insurance coverage. Very few people can afford to incur a $50,000 or more medical expense without a second mortgage on their home, for which if unable to return to work they might not qualify.

The result really can become a medical induced bankruptcy, which is one of the many causes of increasing homelessness in the United States.

A starter specified benefit plan provides for hospital expenses to at least $50,000 per occurrence and some plans have deductibles as low as $500 and reimburse on a straight 80 percent thereafter reducing the amount that you pay to 20 percent.

Such basic plans are so low cost that it’s not unreasonable to insure a family of four at near $400 per month even with one adult having diabetes, or insure a single adult for less than $150 per month. Lower or higher rates depend upon age and good current health. Higher coverage, pre-existing conditions and optional increased benefits will cost more.

There is a Texas based company that offers such low price plans, it is the United American Insurance Company of McKinney, which has a website of www.unitedamerican.com. Many other insurance companies offering a variety of health insurance plans can be found at www.ehealthinsurance.com.

Amazingly, for some employees, their take-home pay can actually be increased by buying a low-cost health insurance plan with a pre-tax earned income via payroll deduction instead of paying the premium after they receive their paycheck. To do so, their employer has to implement a section 125 payroll deduction plan. It may sound too good to be true, but it is the difference between spending pre-tax versus net earnings. However, it does take their employer’s cooperation and some employer’s in Rockwall County will not do a pre-tax health insurance payroll deduction for their employees, even though the premiums are entirely paid by employee earnings with no employer contribution at all. To me, it’s a “no-brainer,” the employee gets health care and more take home pay, the employer gets a tax credit and greater assurance of good employee health. It’s the right thing to do.

Thom Bouis, a licensed insurance agent and the Democratic Party candidate for Rockwall County Judge