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Health Insurance Costs: $16,351 a Year per Family

Written by Gary North on August 21, 2013

This may seem incredible. It’s true anyway. The Henry J. Kaiser Foundation has released the figure. This is what the typical premium costs for families whose health insurance is paid for by their employers.

The main advantage is that this is not taxable income. For workers whose employers provide health insurance coverage, this is a huge tax loophole.  Here is a chart on what it costs families. The costs have skyrocketed over the last decade.

If an employer has to pay for its share of the coverage, it would have been willing to pay this as wages. It is an expense of hiring a worker. But to get the tax loophole, the worker takes the income in the form of health insurance. This makes good sense economically. But few workers understand the economics of the arrangement. Congress pretends that income is not income in this case.

The chart appears in an article released by the Kaiser Foundation that does not explain that this total cost is borne by the workers. This same analysis also applies to the “employer’s contribution” of Social Security. The worker pays all of it, but this fact is concealed from workers by the language of the law. Economists understand the subterfuge, but most people don’t.

Costs rose 4% in 2013 for families, and 5% for individuals.

Wages rose about 2%.

My wife’s annual contribution for Christian Health Care Ministries did not rise: $1,000, total. But Christian Health Care Ministries is not regulated by the government. Costs are low.

Health insurance is regulated heavily by state governments and the federal government. Costs are rising relentlessly. ObamaCare will make them rise even more.

When the government comes to help you, beware. “Keep your hand upon your wallet, and your back against the wall.”

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25 thoughts on “Health Insurance Costs: $16,351 a Year per Family

  1. Edward Shick says:

    This is going to put me in to a budget crunch I retired forced as on medical, after total Knee, from Ford in 96 at 64 years old and had worked there 39 years ,, They said do not worry Ford will take care of insurance till you die ,, then in 2010 it is now the union, Ford is out of it Pension is 15,468 dollars a Year, This is going to get tight as I have COPD after working for years in cast Iron Dust!

  2. Money spent on personal healthcare should be tax deductible regardless who pays for it. The prosperity, and sovereignty of a nation depends on its citizens being healthy. If people fall into a state of poor health they can no longer take care of themselves. When this happens someone has to take care of them. I also believe that children of the elderly people who have non place to go, should get tax credits for housing and caring for them. The welfare state, and abuses of entitlements has resulted in a wildfire that is consuming this country. And for the record, if you paid into SSI and Medicare as a working class individual, your SSI and Medicare benefits are not an entitlement. They are benefits that belong to you, you own them.

  3. I don't insure anything unless it's mandatory. Biggest scam ever is insurance and insurance companies. Insure yourself

  4. Phillip the Bruce says:

    Sorry, guess again. FICA and Medicare taxes are just that, taxes. The government does not owe you anything. If you doubt me, go read the original legislation. And refer to the Supreme Court ruling back when SS was passed. They told Roosevelt that he had no Constitutional authority to provide insurance. But he replied that it was NOT insurance, even though that is how it was presented and sold to the people at the time.

  5. I understand but if you were on social security and drawing $1000.00 a month which would be $12,000.00 per year how do you think that looks. Someone is out to change the way America does business and I bet you can figure out who it is. As for the rest of them they will let it happen because they don't want to cause trouble. By the way they will all WANT YOU TO VOTE THEM BACK IN.

  6. Honk if I'm paying for your health care.

  7. cbanalyst says:

    I don't understand why they are fighting Obamacare. Let it happen & the people that think it so great will be educated & demand changes.

  8. The thing is that we had a health care system that, while messy, worked for ninety percent of the population. Then Obama came along and allowed how we had to take care of the ten percent that weren't covered. So he tore up the whole existing system. Threw it into chaos. Enacted a government takeover. Covered his friends and tossed the rest of us down a rat hole. The funny part is that there will still be ten percent not covered. If he had just left the old system intact and covered the ten percent it would be done and over painlessly. But then he wouldn't have been able to take over one sixth of the economy. See my blog at http://cranky-conservative.blogspot.com

  9. I agree. It’ll only take about 3-4 yrs. for everyone to be screaming for a repeal. Then, the blame can be put where it’s deserved, and they won’t dare try to resurrect it. The temporary pain will be worth the end result.

    I learned this trick from my wise manager while contracting to the dod/doe: just let the stupid policy happen, THEN point to it and ask for its removal. (If you try to convince lukewarm bureaucrats of how bad a policy is going to be, their tendancy towards laziness is there to do nothing…until it’s a problem in their own lap.)

  10. Helen Tritt says:

    This health care is as fraudulent as the occupier in the WH. The "supposedly health care" has been shrouded as such when in actuality is ALL ABOUT MORE of Government Control. Obama is so EVIL AND DECEITFUL, he hides EVERYTHING except by its REAL NAME. The Most DESPICABLE and World's BIGGEST LIAR!!!

  11. George Robinson says:

    Sure does suck to have live in the USA as a retired blue collar worker, cost of almost everything rising year on year, fortunately I live in Sweden, a retired blue collar worker, with a pension of $4135 a month……taxed of course at 16,2%, healthcare and dental care are almost free……………..not bad for a person living in a piss-ant country

  12. Edward Shick says:

    Yes while cleaning out old papers We found Insurance that we paid in as an 20 year Plan , they are now in there late fifties ,so we took them to an insurance office and they aid they would check on them and get in touch with my daughters , that has been since last winter and they have not heard and they say they are working on it,, Why we did not write down policy # when we took them in ,, I'm going to see them again , it isn't much , i think we paid about a dollar a month,

  13. Owning something means you have paid for it in its entirety and can do with it as you want, including reselling it. You don't own much of anything in this country. Think you own your house? Try not paying your real estate taxes and see who owns it. Think you own your car? Try not paying the registration, insurance, etc. and see who owns it. Think you own your Social Security and Medicare benefits? Try reassigning them to someone else, or better yet, try not paying your Medicare once you retire. They take it right out of your SS check even after retirement. You will find out that you DON'T own them and you never will. You never stop paying for them.

  14. "The chart appears in an article released by the Kaiser Foundation that does not explain that this total cost is borne by the workers."
    It would be most instructive to see an article that explains how the total cost of healthcare is actually borne by the workers; a similar article regarding such things as unemployment "benefits" and how the cost is actually on the worker's back (directly and indirectly in the form of having a harder time getting a job if you become unemployed, which is my present circumstance). Such articles would make it much easier to explain to otherwise bright folks why these programs are such bad ideas.

  15. I don't understand !?? Our president told us we would will save money. Our president wouldn't lie, would he ?

  16. WhiteFalcon says:

    Say "Thank you Ovomit." He is the one that is greatly responsible. Aren't you proud that you voted for him? I assume that you did since you were a union worker but maybe you were smart enough to see through him and didn't vote for him.

  17. The article assumes that if the employer was not forced to pay Social Security and Medicares taxes that money would instead be passed on to the employee in the form of wages. That is not a good assumption. I have worked for more than one employer who would have been happy to pocket that money. The cost of insurance might be a little different in that the employer would have to give the employee some kind of compensation to make up for the loss of insurance to retain good employees.

  18. I believe that is what the article says, albeit poorly. It says that the cost of health insurance which the employer "pays" is really money that would otherwise be spent as wages. In other words, the employee would be paid that much more. Therefore, the employer is, in a sense, "withholding" that much money from the employee, but calling it a benefit. Plus, the employee is also paying a portion of the health care costs which are deducted from his check. Therefore, the employee IS footing the bill for the entire cost of his health insurance, but is unable to claim it on his income tax because it appears the employer is footing the bill.

  19. I opted out of the health insurance scam years ago, because it was such a nightmare dealing with the myriad screw-ups it was shortening my life. Every doctors' office had a clerk whose sole job was filing paperwork with the carriers. Inevitably some code would get input wrong and my claims rejected. There was so much stress trying to straighten out the bureaucratic cock-ups, I just dropped insurance altogether. And I actually started seeing less of doctors period.

    There are probably 100's of 1000's of people like me who realized that health insurance is NOT synonymous with quality health care. The American business model is no longer inventing a better mousetrap, but gaming the system with laws that simply confiscate people's money through government-protected monopolies.

    The government is just a massive racketeering operation.

  20. better yet, let's try dropping all taxes to ONLY pay for those few things mandated to FedGov by the COnstitution.. then see how much money we ALL have at the end of next year…. that is truly OUR to spend.save/invest as WE see fit. End ALL tax deductions, too… the money we'd all have available would be far more than we'd be spending on those things. Oh, and govenrment meddling would be all but gone, further decreasing cost of most things… starting with medical costs.

  21. What are you talking about?

  22. Kenneth Hazard says:

    All I know is a CT Scan was only 35.00 flat copay last year. This year it was only 255.00 copay flat some savings Thanks Ovomit..

  23. I had the same thing happen when I had been paying in for life insurance for 17 years and wanted to cash it in. I did not have the policy number so they said they couldn't help me. I said that I have the numbers that are used for the automatic withdrawal each month and they said that didn't count. Then they said what was the agents name and I said I had not seen him since he sold me the policy 17 years ago. Long story short I finally reached one of the corporate offices and after a little complaining, a lot of complaining, I got them to close and send a check. That night or the next day an agent called and said that he was my agent. Not the original agent but someone who took over the account and he wanted to know why I was closing the account. I asked him what was the name of the agent he got the account from but he didn't know. I told him what I had gone through and that if I had died they would have kept the money in that account. I said that if they could not find me when I was alive what makes them think I believe they would be able to when I was dead. How many times does this same thing happen? Insurance companies are betting we will not be ill and we are betting we will.


  25. Do you really think that once something has been started the intelligent idiots that passed it will change their mind later on? Have they stopped taking out social and med on the people that we know will never get it? h let's have them pay into it and we will work it out later. Government maybe is 1000 years. Don't be so liberal that it becomes stupid.