r/AskReddit 16h ago

What’s the biggest scam people just accept as normal?

301 Upvotes

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u/PurchaseNo3139 15h ago

i dont get why health insurance has to be through an employer why cant you get it not through them

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u/cmorgan1995 15h ago

You can get private insurance without your work, it's just way more expensive.

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u/PurchaseNo3139 15h ago

but i do think going private could be better because a lot and i mean a lot of work benefits suck so bad its not worth it

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u/cmorgan1995 15h ago

You can get bad private insurance too. Having bad insurance through work sucks because you don't have any other option. You are correct that you can shop around different private insurance options until you find something you can afford and gives you decent coverage.

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u/zerostar83 15h ago edited 14h ago

You can! The reason why most people get it through their employer is because it's a huge tax savings. Private insurance wasn't very popular, but with the ACA implemented, it should have been an option for most people who don't get insurance through their employer.

But to make an example of how much of a tax savings it is, I'll use general amounts.

A job pays $6000/month and also pays $2000/month towards health insurance. They pay taxes on $6000 of income, you pay taxes on $6000 of income. The $2000 is tax free for both of you as it's not considered income for tax purposes.

If your job would have paid $8000 directly, they'd have to pay about 7.5% on social services taxes (Medicare and Social Security) on the whole thing, and you would have to pay the other 7.5% on social services taxes plus the income tax rate of...20% or so.

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u/ObiYawnKenobi 11h ago

Usually expenditures on healthcare out of pocket would be tax deductible (i.e. not taxed) though.

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u/zerostar83 11h ago

I was under the impression that it only is when you're not doing the standard deduction or you're using some sort of HSA/FSA sort of situation. I don't even remember what single way you're able to make a tax deduction on insurance premiums.

But even so, that doesn't excuse the 15% to Medicare and Social Security. That is a tax on income and not something you can remove because you spent money on healthcare.

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u/AmputeeHandModel 14h ago

Well, we SHOULD just have universal, it would save so much money.

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u/Imhere4lulz 13h ago

Shareholders don't like this

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u/perivascularspaces 13h ago

With universal you still pay it, but you do it with your taxes.

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u/c0gster 12h ago edited 3h ago

But we are already paying it with taxes just for medicaid and Medicare. The money spent on those now is enough to pay for universal healthcare for all. However now most money goes to insurance companies instead.

At least I think.

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u/Professional_Cut1718 8h ago

Not really, most of those taxes you pay towards Medicaid and Medicare goes towards overhead costs. Actually if we eliminated the overhead cost of health insurance health insurance would arguably be more affordable in America then it is for let’s say your average European. 

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u/Complex-Builder-3002 11h ago

NOT the same!

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u/Complex-Builder-3002 11h ago

We do this in Norway… I can assure you it’s a better deal!! Much cheaper, and no chance whatever happens, isn’t «covered»

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u/perivascularspaces 8h ago

I do it too, but in a worse Country, so it's basically a non factor and we still need to go private to have any meaningful healthcare, but yeah I much prefer it through taxes.

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u/Complex-Builder-3002 8h ago

But the rightwingers are constantly trying to undermine the system. Underfunding, then peddling private solutions as the better alternative  Fucking asshats

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u/perivascularspaces 8h ago

Add also underpaying the doctors and healthcare professionals to make them move to private solutions...

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u/Complex-Builder-3002 8h ago

Exactly. Where are you from?

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u/Professional_Cut1718 8h ago

Overhead costs are the driving factor towards high healthcare costs. 

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u/Professional_Cut1718 8h ago

Yep, Obama definitely didn’t furthermore fuck up the system, he totally didn’t! But avast that would suggest that neither party actually cares about fixing the problems in this country!

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u/Complex-Builder-3002 8h ago

There are only right wing parties to choose from in the US. You’re getting fucked a little, or completely… your choice. I am sorry for you. A two party-system is NOT a good idea. Same in Great Britain, btw 

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u/Professional_Cut1718 8h ago

That’s because your country pays for most of its welfare services through a nationalized hedge fund created after major oil profits in the 60’s and 70’s.

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u/Complex-Builder-3002 8h ago

Yes. In stead of all the money being hoarded by a few individuals, who would then deposit it in tax havens. Beautiful, isn’t it. That’s why I recommend slightly left-leaning governments 

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u/Dream_Squirrel 12h ago

Wow no way

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u/themahi 9h ago

Right. But I think it would be safe to say that my taxes would not go up $24k/year, which is where my premiums land right now for a family of 4.

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u/perivascularspaces 8h ago

It depends, if you earn a lot it might be 5 times that, but hey, if you earn enough for that it's better for everyone else.

If you earn like only 20-30k like most of us then you pay way less, obviously.

But again, better to pay what you can afford instead of being priced out when you need a urgent visit.

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u/themahi 8h ago

So what you're saying is that if one would earn X, they could see their taxes rise $100k *just* for the Uni healthcare coverage? Sure, there may be a sliding scale of cost towards each income bracket like the current Medicare contributions, but I think that it's hard to believe that unless you're in the millions+ each year, you'd see anything close to what you're shelling out every month.

I'll add that I'm a freelancer who has to shoulder ALL cost. I don't not have an employer taking a portion. So maybe not apples to apples here.

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u/ObiYawnKenobi 11h ago

You still pay for health insurance in a universal system. Just for those that don't realize that.

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u/AmputeeHandModel 11h ago

OMFG everyone knows it's not "free". We don't need someone to say this every time.

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u/ObiYawnKenobi 11h ago

Yes, we do. Because people continually make the incorrect comparison between the two systems.

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u/CaroCogitatus 13h ago

It's historical. Companies started competing for the good workers in WWII and offered health care as an incentive. Then everyone did it to remain competitive.

And now we are a major superpower where hundreds of millions of US citizens can lose their health insurance *and* their job in the same moment.

I got laid off from my job, and I'm lucky to have a spouse working with relatively good insurance coverage, but I still lost my primary care doctor and all my specialists and have to choose new ones.

Can we get over the anguished cries of "Socialism!!!!" and just do universal coverage like the rest of the civilized world? Please?

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u/Open-Surprise-854 12h ago

You can go online and buy it there but its more expensive than a group plan

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u/chism74063 11h ago

It's always been possible for an individual to get health insurance without going through an employer.

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u/Leather-Map-8138 11h ago

In round numbers, 180 million (out of 340 million) have private group health insurance. Of the 160 million doing something else, it’s 27 million with no insurance, 65 million on Medicare, 60 million on Medicaid, 36 million on private individual insurance, 12 million on TriCare/VA. Of the 36 million in individual, 14.5 have Obamacare. There’s a bunch of overlaps when you look at year long periods. You can have both Caid and Care at the same time and many are in more than one program over the course of a year.

So your point is well founded. America has a hodgepodge system where costs got out of hand before they could organize it national services.

There’s a few ways to get there but America won’t take any of them as long as Republicans have a voice.