Health Care! What Does It Cost?

February 11, 2014

 

As if Obamacare is not bad enough, trying to compare local health care rates is not easy. But I will make an attempt to compare the active employee rates and the cost to you the taxpayers for the City of Memphis, the County and the MLGW. Here we go.

First you have to look at the plans available in 2014.

The City of Memphis has three options: Premier, Basic and Value plans. Attached is a brief overview. The prices shown in red are what the employee pays twice a month or 24 times per year. This is the 30%. You, the taxpayer, pays the 70%.

The Basic family plan costs the employee $4127 per year. It costs you the taxpayer (70% of total cost) $9630 per year. It’s total cost is $13757 per year.

The Basic plan covering the employee only costs the employee $1944 per year. It costs you the taxpayer (70% of total cost) $4536 per year. It’s total cost is $6480 per year.

The lowest cost value plan for a family costs the employee $3540 per year. It costs you the taxpayer (70% of total cost) $8260 per year. It’s total cost is $11800 per year.

The lowest value plan covering the employee only costs the employee $1008 per year. It costs you the taxpayer (70% of total cost) $2352 per year. It’s total cost is $3360 per year.

Now compare the MLGW value plan. The MLGW OAP value plan for a family costs the employee $2617 per year. It costs you the rate payer (75% of total cost) $7853 per year. It’s total cost is $10471 per year.

Now compare the MLGW OAP 83% plan. This plan for a family costs the employee $4661 per year. It cost you the ratepayer (75% of total cost) $13984 per year for a total cost per year of $18645 . The cost to the ratepayer is 69% more than the cost for a similar plan to the city taxpayer per year.

The County’s OAP (PPO) family plan costs the employee $4880 per year. It cost you the taxpayer $11388 per year. It’s total cost is $16272 per year.

Confused? I am. Let me recap.

Lowest cost Memphis plan for a family costs the taxpayers                                $8260/year

Lowest cost MLGW plan for a family costs the ratepayers                                    $7853/year

Lowest cost Shelby County plan for a family costs the taxpayers                          $9139/year

Highest cost Memphis plan for a family costs the taxpayers                                  $9941/year

Highest cost MLGW plan for a family costs the ratepayers                                    $13984/year

Highest cost Shelby County plan for a family costs the taxpayers                        $11390/year

 

Of course there are differences in the annual deductibles, the co-insurance, the annual out of pocket maximums and the percentage you pay for office visits, hospitals and emergency rooms and lots of other items. However what I do not understand is why there is no coordination between the City of Memphis, the County and the MLGW. It looks like there should be a uniform plan and a uniform percentage that the taxpayers and the ratepayers pay. Health care costs are huge and growing. We must get a handle on this problem locally and nationally. What do you think?

One Response to “Health Care! What Does It Cost?”

  1. We need to look at the cost of benefits AND basic compensation. Based on the 5-year strategic plan on the City’s website, we’re paying our employees (public mind you) at rates significantly higher than private sector employees. Why?

Leave a Reply