"RCE" wrote in message
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"JoeSpareBedroom" wrote in message
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Perhaps you can explain why, in some states, we can no longer get what
was once called major medical insurance. Let the customer pay all the
cheap stuff (doctor's visits), and the insurance is for the horror shows
(car accidents). I think the key word is "some states". Why the
discrepancies?


I don't know about *all* states, but you can still get it in some.

The reason major medical policies disappeared is due to consumer demand
for the HMOs. When HMOs started becoming popular in the late 70's, early
80's employees covered by company health insurance wanted them because
they only had to pay a small contribution for each doctor visit.
Companies, in order to stay competitive in benefits to attract and keep
employees were forced to switch to the HMO plans. I have personal
experience with this.

I've ranted before about this, including an analysis I did a few years
back where I determined that it would be less expensive for the company
and the employees if we went back to a major medical plan and the company
simply paid for the employee's and their family's regular doctor visits
for checkups or for little Johnny's runny nose.

Eisboch


On an individual basis, your last paragraph is certainly true for me. My
COBRA advantage will end soon, and my premiums will jump from $340-ish to
$650 per month. My employer will cover the expense because it's cheaper for
them to do that than to put me on their plan (for various complicated
reasons not important here). But still, it's crazy, to anyone with a
penchant for budgets. I live in a relatively cheap place, in terms of
doctor's office visits. My internest charges $60. I see a specialist twice a
year, who charges under $100. Sure, I could get very sick, I could be in a
car accident. But....cripes...I have a quarter mil of life insurance that
costs a fraction of these rates. It's all just math.