Why is insurance so expensive at higher-paying jobs?
I’m a 24-year-old female who used to jump around between jobs, but I finally found the right fit with my current employer—a large, billion-dollar airline. However, I’m shocked by the cost of their insurance. The cheapest plan is $190 a month, with a $7,000 deductible and a $200 copay. I hear my older coworkers rave about how great the benefits are, but I’m confused about why we have to shell out so much for it.
In contrast, my previous minimum-wage jobs—like Amazon and fast food establishments—offered insurance for under $20 a month that covered nearly everything. When I worked at Amazon from 2020 to 2022, I had free copays and prescriptions, and there were hardly any paycheck deductions. They even covered mental health services and medical testing.
Now, my spouse works at a casual restaurant and just received her benefits plan. It costs $70 a month for a BCBS gold plan, with $20 copays and extensive coverage. I can’t help but wonder: why is a high-profile “legacy” company, brimming with resources and highly sought after for employment, charging more for health coverage than minimum wage jobs do? How do jobs that pay less provide insurance for as little as $30 a month, while my corporate position costs me $200, excluding deductibles, specialists, and prescriptions?
One more question: Is it worth it for people like me—young and without medical needs—to pick up a part-time job in fast food for the affordable coverage? It seems like a no-brainer hack to me.
Thanks in advance for any insights you can provide!
It’s a great question, and you’re not alone in your confusion about why health insurance costs can vary so widely between different employers and industries.
One potential reason that low-wage jobs at places like Amazon or fast food restaurants can offer cheaper insurance is that they often work with insurance providers that have negotiated lower rates for their employees. These companies might also have access to plans that are more community-rated, meaning they spread the risk across a larger group of employees, which can help keep costs down. Additionally, some of these companies may incentivize keeping health care costs low to attract and retain workers, especially in competitive labor markets.
On the other hand, larger corporations, especially in highly regulated industries like airlines, may have more complex coverage structures due to the various benefits they offer, which can drive up costs. They might have different requirements for deductibles and out-of-pocket maximums, and the focus might be on providing more comprehensive coverage for those who need it—the older employees and those with ongoing health issues.
Regarding your second question about whether it would make sense to get a part-time job at a fast food place for inexpensive coverage: it really depends on your personal situation and how you weigh the costs and benefits. If the part-time job would give you insurance that meets your needs without adding significant stress or time constraints, it could be a good strategy. Just make sure to consider the overall implications on your time, energy, and any potential implications for your full-time job.
Ultimately, it’s about finding the right balance for your lifestyle and health needs. If low-cost insurance is a priority for you and your spouse right now, exploring options at lower-wage employers could indeed be a smart move. Just make sure to carefully read any plan details to ensure it really covers what you need without hidden costs. Good luck!