Healthcare etc. in the US

Post Reply
Tokyodude
Posts: 7
Joined: Sun Jun 05, 2011 12:31 pm

Healthcare etc. in the US

Post by Tokyodude »

Hello there. I have been a lurker for some time before deciding to jump on the wagon to get your valuable inputs.

Background:
We currently live in Tokyo. Have been here for close to 7 years. Family comprises of wife and toddler son. Wife is on a sabbatical from work to take care of son. I like life here (though train commute can be a pain at times) and most of all, the universal healthcare.
Now I am looking to jump ship, and we were seriously considering R2I for a while. In the course of my job search I came across some interesting openings in the US. Now I know it is too early to take shifting to USA seriously, but I do not have too many acquaintances in the US and wanted your inputs on the following:

1. What % of healthcare cost is covered by insurance? I understand that it could depend on what kind of plan your company has opted for, but can you give me an average number?
Here in Japan we pay 30% for wife and I, 10% for the kid. Govt bears the rest.

2. What is the average cost of school education starting from kindergarten? (Thats one of the main reasons Im looking to shift from Japan)

3. What is the approx cost involved in childbirth in the US?

I am primarily concerned about the healthcare costs as we plan to expand our family soon. Here in Japan we have never had to worry about visiting the doc (dental included) and its almost free for our son-he gets a monthly allowance as well:))

Another thing: Wife was working in Japan for some time before marriage, and is deeply attached to the place. She is quite skeptical about moving to the US as she feels that it is the polar opposite of Japan in many ways (?) Has anyone worked in both places? If so, what is your take on the "differences?"

Any input will be appreciated. Thanks.
gurusw
Posts: 629
Joined: Sun Jan 21, 2007 10:19 pm

Healthcare etc. in the US

Post by gurusw »

For a family of 3, I was paying between $300 to $350 per months for health insurance. It's all tax deductible. My employer was paying 4 times that to the insurance company - meaning it was 20-80 deal. Some folks have 25-75 deal which means more money out of your pocket. If you are w/o job, your medical insurance cost goes up by 3X or 4X.

My copay per doctor visit was $15 before I left USA 5 months back. I had friends paying $10 (very rare), and also had friends paying $20 copay. For pregnant woman, there are n number of visits, but you have to pay copay for the first visit only - the rest of fully reimbursable by insurance.
The same copay also applies to prescription medicines. For over-the-counter drugs for cough/cold, you are on your own.

For the outpatient/inpatient services, there is copay of $100 or $150 which also applies to child delivery.

Cosmetic surgeries like laser surgery for vision , are not covered by insurance.

For some expensive procedures like MRI scan (just an example) you may have to pay 20% of the cost, which can be very costly.
gurusw
Posts: 629
Joined: Sun Jan 21, 2007 10:19 pm

Healthcare etc. in the US

Post by gurusw »

Schooling is free in USA if you send your kids to public schools. But the free stuff kicks in only from UKG. For nursery and LKG, people in NorthEast USA shell out as much as $10,000 per year if they send kids to school for all 5 days a week. If you send kids to school for only 3 days a week, the cost will be halved.
Tokyodude
Posts: 7
Joined: Sun Jun 05, 2011 12:31 pm

Healthcare etc. in the US

Post by Tokyodude »

Thanks a lot for the information!
Would this % range differ vastly if I were to join a small or mid-sized company?

I am also looking for inputs on differences in the general environment and day-to-day life in the US and Japan, if you can provide some. Thanks!
r2i_sammy
Posts: 11
Joined: Sun Apr 24, 2011 5:57 am

Healthcare etc. in the US

Post by r2i_sammy »

% range of course depends on the size of the company... because of the group size for the health insurance policy. Typically larger companies can negotiate better with the insurance companies.
But a lot of mid-size and small companies join outsource their healthcare and HR through organizations like TriNet... where the costs are comparable to larger companies. You just need to do your homework for the insurance costs with a particular organization before you join. But again even if you really have to pay, you pay a small percentage of your salary. It should not cause a dent in your expenses in my opinion if you are joining at a senior position.

I haven't had experience working in Japan, but some of my friends do. Life in the US varies widely depending on if your job is in a metro area like NY, SF, LA or tech suburbs like Rayleigh, Austin, Bay Area etc. Life in big metros are hectic like in Japan, with public transportation, expensive parking, dealing with traffic etc.,.... but in suburbian tech hubs, it is much more relaxed than any place in Japan. This is again from my perception based on opinions derived from friends who have worked in the Tokyo area.
APTE
Posts: 27
Joined: Tue Jan 18, 2011 4:43 am

Healthcare etc. in the US

Post by APTE »

1. Healthcare cost: There is a wide variation out of pocket costs based on the insurance plans. Unlike Japan, US has several insurance carriers and each carrier has several different plans. First and foremost you will be responsible for portion of premium that may vary anywhere from $50 to $300 per pay period (biweekly). Then there are deductibles that may vary anywhere from $100 to $1000. Keep in mind that the deductibles are inversely propotional to the insurance premiums, i.e. insurance plans with high deductible will cost less. Finally, there will be co-pays associated with whichever plan you choose. Co-pays are your out of pocket costs that patients are responsible for when availing healthcare. These may range from $10-$50 for physician visits, prescription drugs, lab work, hospital stay etc. Your geographical location in US is also a factor. Heathcare costs even with the insurance, are typically higher in big metros such as LA or NY than in smaller suburbs. Although, this may not be a deciding factor, but typically companies with large employee pool are able to offer low cost healthcare plans. As you can see there are wide variety of factors that may influence your out of pocket costs. I have a family of 4 with 2 kids in a small midwestern town. My out of the pocket cost including insurance premium is approximately $200 per month, barring no major untoward incidents.
2. K-12 schooling in the US public school system is free, so long you are the legal resident in the school district. Personal cost will come only if you choose to send your children to a private school. I don't have much experience with that.
3. All prenatal, childbirth process, and post natal care should be covered by insurance, no matter what kind of carrier/plan you choose with minimal out of pocket cost. Out of pocket cost may increase in case of untoward incidents such as premature deliver or complications with pregnancy, but should not be significant.

Hope this is helpful.
Tokyodude
Posts: 7
Joined: Sun Jun 05, 2011 12:31 pm

Healthcare etc. in the US

Post by Tokyodude »

APTE, the numbers have given me a better picture. Thanks.

One more question:
Right now my take-home pay=Gross-approx. 16% of gross
16% comprises of tax, insurance and deduction towards pension fund.
I do not have to pay any further tax out of my pocket.

What % can I look at in the US?
tantrix
Posts: 11
Joined: Wed Jun 08, 2011 12:37 am

Healthcare etc. in the US

Post by tantrix »

Tokyodude;393265APTE, the numbers have given me a better picture. Thanks.

One more question:
Right now my take-home pay=Gross-approx. 16% of gross
16% comprises of tax, insurance and deduction towards pension fund.
I do not have to pay any further tax out of my pocket.

What % can I look at in the US?


I'm single, so no dependants.
My pay in US is about 85k a year... thats before any tax, insurance etc. That comes out to $3,200 every two weeks.

Take home is about $2,200 every two weeks. So $1000 goes in that extra crap. That's almost 30%. If you are a corporation (not a salaried guy) then you can obviously write off a whole lot more. I can't... ;)
okonomi
Posts: 4381
Joined: Mon Nov 22, 2010 7:18 pm

Healthcare etc. in the US

Post by okonomi »

Tokyodude;393265APTE, the numbers have given me a better picture. Thanks.

One more question:
Right now my take-home pay=Gross-approx. 16% of gross
16% comprises of tax, insurance and deduction towards pension fund.
I do not have to pay any further tax out of my pocket.

What % can I look at in the US?

http://www.calculator.net/take-home-pay-calculator.html
here is a calculator....do various scenarios and have fun.

I would recommend that you read up on costs of food (groceries) between locations. USA is cheap.
gwldaddu
Posts: 909
Joined: Wed Mar 05, 2008 12:22 am

Healthcare etc. in the US

Post by gwldaddu »

If you are living in a good neighborhood (meaning good public schools), then you will send your kids to public school. The cost of schooling in such schools (starting from Kindergarten) is almost zero.

We pay $70/year. If you show financial hardship, you don't have to pay even that.

Since you mentioned that your kid is a toddler.. you will send the kid to preschool in a year or two. The cost depends on the location/hours_per_day.

We sent our kid to a good preschool. It was only 3 hours/day. We paid, I guess $200 a month.

Please note that if you are sending the kid to private school in places like Downtown Chicago, you are looking at a minimum of $1300/month.

Also, if your wife is going to work, then you will be sending the kid to daycare after schools. Factor the cost of that too.

Good Luck
Post Reply

Return to “To Pune, Mumbai, Maharashtra”