The graph illustrates the employer paying 50% of the premium and the employee paying the balance, plus additional out-of-pocket expenses. Three of the plans have the same doctors, hospitals, nurses, medication, and all other medical treatments. The $8,420 claim amount represents the identical medical event for all four plans. The only difference is in the distribution of the costs. You want choices, but in reality the only choice you have is in the amount of money you pay for the exact same benefit. The handwriting is on the wall:

how to go broke in one easy lesson, buy the highest cost medical plan.

The sample reports on the right side of this page illustrate how to enter data so you can compare the costs if your employer pays any part of the premium or if you pay all of the premium without any employer involvement. You will notice that the employer's cost is fixed while your cost can expand dramatically. You'll also notice that the prices of medical coverage are not actuarially equivalent. That means you're not buying the same thing with the same dollars. That's why you need to estimate the total amount of claims paid, not just your share, but the total amount paid to all providers by you and the insurance companies.


These links will take you to several government sites that explain current average premiums and future expected medical costs per person. The costs will more than triple in eight years to where a family is paying more than 50% of income on medical care.

CLICK HERE to see the average annual small group medical insurance premium (not average cost, which is higher) for 2010, as provided by the Internal Revenue Service, $4,904 per person.

CLICK HEREto see the government's projection of the average annual medical cost for all U.S. residents in 2019 (See the last question). The amount of money each family member must pay if medical costs are divided equally, $15,000 or more per person.

There's much more to the cost of medical insurance than the monthly premium. The premium must be converted to annual, because all costs and benefits are annualized. You must consider the copayment amount, maximum out-of-pocket, deductible, claims paid, exclusions, and other items.

We sell a program to help you calculate the total cost, including estimated claims.

Medical claims (your share of the medical expenses: plus doctors, hospitals, drugs, etc.) can be more important than premiums when determining cost.

Now you can find out how much the various plans cost when compared side by side based upon the premiums and different estimated claims any insured might file. Compare plans with the same insurer or compare across insurance companies.

If you have a small business with

ten employees

the total cost could be as much as $20,000 to $40,000 or more per year than necessary for the same benefits. If you have 50 employees the cost could be $100,000 to $200,000 or more than necessary every year (comparing spousal coverage ages 40 to 49).

No need to change brokers. Keep the broker you now have.


for small businesses and individuals

can be can be accessed from your office or home. Anyone can use it.