A Friends & Family Health Care Fundraising Example #MNSure

I recently attended a fundraiser for an employee of a local restaurant who contracted brain cancer. His health care bills are clearly going to be astronomical. But, he has an incredible group of family, friends, and coworkers with the means to help who managed to raise over $13,000 to help him with his bills.

That’s great stuff, but is that really the best way to pay for health care? In a pre-Obamacare world, it’s certainly a common one, based on the number of posts to Facebook and signs I see in the entryway to restaurants promoting events like this.

How would that be different under Obamacare? Here’s how I think it could go down. I went to mnsure.org to look for a plan that may be suitable for the person mentioned above. My assumption was that he’s around my age and doesn’t smoke. At this point, my browser crashed, so I restarted it rather than pretend that this is the end of the world. Then I found some plans.

The cheapest plan I could find was a bronze plan for $113.87/month:

Screenshot 2013-12-06 09.21.55

This plan may be cheaper for people with low incomes due to state and federal subsidies, which may be the case for a restaurant employee.

Take a look at that deductible ($6,300). Notice that it’s less than half of what his friends and family were able to raise for him. Here’s the breakdown:

Screenshot 2013-12-06 09.24.45

As I see it, we’re going from a friends & family fundraisers to make a small dents in enormous health care bills to friends & family fundraisers to cover fixed health insurance deductible payments. That, to me, is not a perfect system, but a better one than we’ve had in the past.

5 thoughts on “A Friends & Family Health Care Fundraising Example #MNSure”

  1. Ed,

    You also have to look at the out of pocket max which is the same $6,300 that the deducible is. Once he’s met his deductible all of his medical bills are paid (at least until the end of the year.) You can also get plans with HSAs so you can put aside tax deferred money for deductibles.

  2. So now his insurance pays 60% of his bill (Bronze Plan) after he pays $6300.
    If his treatment is $106,300 he pays $46,300. 6300+40,000.
    Like taking out a couple lifetime student loans in one year.

    Keep fundraising.

  3. Steven the deductible and the out of pocket max is the same. Once the 6,300 is met then he doesn’t pay anything. There is no 60%. It looks like that is standard on the bronze plans. From looking at other plans the gold and silver have lower deductibles but the same out of pocket max. And the plan is $113 a month. I work for a company that makes several billion in profit a year and my share of my health insurance is about $110 a month. But my deductible and out of pocket make are far less.

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