It’s health care open enrollment season at my place of employment. That means the updated pricing figures for the coming year are out for the respective health plans. It’s always interesting to see just how much the employer is pitching in every month towards my health care. Annualized, it’s over $12,000.
I know that’s a part of my total compensation package, but psychologically it’s not that tangible. It’s money that I don’t see ever. The take-home that reaches the checking account every pay period is what’s most salient. And because I’m rather on the healthy side, my interaction with health care provider doesn’t go beyond the annual physical. So you’re telling me that’s worth $12,000?!
What if that money is given directly to me instead - to use however I want. Now obviously health insurance is important, so I’d still go on the ACA marketplace to buy something. Surely there’s plans that are significantly cheaper than $1,000 a month. Weaker coverage is likely, but I’m okay with paying higher deductibles so long as the true catastrophes are covered. That’s what insurance should be.
What would I do with the leftover cash? Invest it, of course. Compounding is our best friend. If that money is truly considered compensation, then let me decide how to best use it. Throwing money towards good health insurance is not maximizing its utility, given my current station in life. My tune would no doubt change if I were to have dependents.
Isn’t that a big argument against universal healthcare in America: the preservation of choice? That ought to include how much healthcare I want to have, especially if employers are giving out that money regardless. Give me the cash directly, I’ll figure out the rest. It’s like using your personal credit card for work related things and getting reimbursed later: you get to keep the credit card points!
Me too!