Young Adults and their Employer Coverage

Three young adults (“millennials”) talked about their employer coverage over brunch. All were in town to see Hamilton and enjoy friends.

How is their health? Good. They are healthy with no chronic conditions or serious illnesses. Two have recently had their first real experience with the health care system, which taught them it was administratively complex and extremely expensive.

Where do they get health insurance? Jobs. All are covered by the same BCBS carrier, which is interesting given the diversity of their employers:

• Australian firm with a few U.S. employees
• Global tech firm based in the U.S.
• Small financial firm in the U.S.

How do they choose? Cost. One young adult lost coverage through her parent’s health plan when she turned 27. She just enrolled in her employer’s “cheapest” plan because she didn’t need any services before the end of the year. “I’ll shop more carefully during open enrollment.”

How much are they spending? Depends. Their payroll deductions and annual deductibles varied from “nothing” to “ridiculous.” They all agreed that paying out-of-pocket costs (e.g., monthly prescriptions) was difficult given living expenses, college loans, etc.

What else have they learned? Concierges. One employer offered a concierge service, which the young adult only learned about after an injury that required surgery. “I couldn’t get an appointment. They got me scheduled the next day with the best surgeon in the city.”

How was it? “Fabulous.” Then, he talked about the Explanation of Benefits (EOB). It illustrated the “crazy cost” of medical care; specifically, $14,000 for outpatient surgery. He’s now getting physical therapy and wondering how much it costs. The concierge service is managing it all.

What about Medicare for All? Uninterested. But they also thought that it makes no sense to tie health insurance to jobs. “My bosses in Australia think it’s absurd. They go through all this extra cost and hassle to cover a few Americans.”

What else? Skimm. The women used it to learn about annual deductibles and savings accounts. It never occurred to them to go to their employers or carriers. These same employers and carriers have distributed 2020 enrollment materials to them, but will they read them?

These friends were happy to have employer coverage. They understood it can be expensive, choice can be limited, and benefits can be reduced. In the meantime, they’re Mastering Health Insurance.