Deductibles. In-network. Non-preferred providers. Concierge medical services. Out-of-pocket expenses. Fixed payment. Co-insurance. Benefit advisers. Insurance brokers. Healthcare consultants. ACA. HMO. PPO. Exclusive Provider Organization. POS. HDHP. Health Savings Account. FSA. HRA. Explanation of Benefits. COBRA. SHOP. Individual coverage. Dependent coverage. Premium tax credits.
Baffled? You should be. Who understands all this stuff? Certainly not the average business owner. Neither the average worker. Choosing the appropriate medical coverage for our business – or for households – appears to require it requires a PhD in medical insurance.
Based on a recent study, typical households pays $27,000 annually for their health insurance (up 6% from last year). Typical company healthcare expense is expected to surpass $seventeen thousand for each worker by 2026, a 9.5% jump from 2025.
Now the government has ceased functioning because partisan disputes regarding subsidies that experts say will lead to premium increases up to 100% for numerous US citizens.
How soon might we genuinely evaluate universal healthcare coverage here in America? I'm convinced we're getting closer because this situation is unsustainable.
I'm not proposing government-run medicine. I'm advocating for our current Medicare program – an insurance system – merely extend to cover everyone. The existing system remains intact. The way our healthcare providers receive payment would change. Trust me, they will adjust.
A national health insurance program would need payments from both workers and companies. In similar programs, an employee earning average wages must contribute about five point three percent to their healthcare. The company must contribute approximately thirteen point seventy-five percent.
Does this appear like a lot? Unless you contrast it to what the typical US resident spends. I can name dozens of clients who are routinely paying between eight to fifteen percent of payroll costs for medical benefits. Remember that with inclusive programs, these contributions also cover pension plans, sick pay, maternity leave and job loss protection in addition to funding medical services. When you add these expenses compared with what we pay on retirement programs, unemployment insurance and paid time off, the gap narrows.
In the US, universal healthcare funding would increase existing Medicare taxes, a system already established. It should be means-based – wealthier individuals would pay more than lower-income earners. There would be both an employee and employer contribution. Similar to much of federal military, IT, welfare services and infrastructure, the system should be outsourced by private contractors instead of federal agencies.
A national health insurance program represents a significant advantage for entrepreneurs such as my company. It would put small companies in equal competition against big corporations that can pay for superior coverage. It would render management much easier (automatic payroll withholding processed similarly to retirement and Medicare taxes, instead of separate payments to benefit firms and insurance providers).
It would enable simpler to plan expenses annual expenditures, rather than going through the complex (and fruitless) process of bargaining with the big insurance providers that we must do every year. Due to simplification, there would exist a better understanding about benefits among workers – as opposed to the current system which require them to decipher the complexities of existing plans. And there would definitely exist less liability for companies since we wouldn't have access to our employees' health histories for purposes of weighing risks and different options.
I'm as pro-market as they get. However I recognize that government play important functions in society, from providing defense to supporting needed infrastructure. Ensuring medical coverage to all through a national insurance system strengthens economic foundations. It represents superior, simpler approach for small businesses which hire the majority of American employees and fund half of our GDP. It enables for workers to be healthier, come to work more often and be more productive.
Are there numerous factors I haven't covered? Of course there are. But with all the healthcare cost increases we've seen in recent years, it's evident that current healthcare legislation is not working very well. I understand that we're not a small, Scandinavian country where big changes can be readily adopted. But expanding universal Medicare, despite increased taxation that would be incurred, would still be a superior and less expensive approach both for controlling healthcare costs and ensuring coverage to everyone.
We as Americans, we need to tone down our own arrogance. America's medical care isn't so great. We rank well below numerous nations with the best healthcare globally, based on major studies. Perhaps a positive aspect in this present circumstances could be that we undertake a hard look in the mirror and agree that big changes need to happen.
Elara is a financial strategist with over a decade of experience in wealth management and entrepreneurship.
