Health Care or a House?

Interesting point from this Wall Street Journal op-ed: "Health Care or a House?" Excerpt: Imagine walking into a job interview and your potential employer tells you that the best thing about working there is that the company will buy you…

Interesting point from this Wall Street Journal op-ed: “Health Care or a House?” Excerpt:

Imagine walking into a job interview and your potential employer tells you that the best thing about working there is that the company will buy you a house. While it sounds preposterous, it just might be cheaper than providing you with health insurance.

The 2005 Kaiser Family Foundation Survey found that the average premium for family medical coverage is $10,880 per year, which is approximately $906 per month. According to the National Association of Realtors, the median price of existing single family homes in December was $211,000. With 20% down and a 30-year mortgage at 6.25%, the cost of buying the home is $1,040 per month. Given the choice between paying an average employee’s fixed-rate mortgage at $1,040 a month or paying for health care, the employer would be better served paying the mortgage. At least the mortgage payment will remain $1,040 a month 10 years from now; the monthly health insurance premium is likely to more than double, to $2,400.

Leave a Reply

Your email address will not be published. Required fields are marked *