The regressive domestic complexity tax
I’ve been keeping tabs on hard it is to do my bills. I did my bills last night, and man, I’m telling you, I used all of my organizational abilities, all of my customer service experience, and quite a bit of my alpha femaleness just to get it done. Not to mention I needed more than 2 hours of time which I squeezed out by starting the bills while waiting for take-out.
By the way, I am not one of those sticklers for doing everything myself – I have an accountant, and I don’t read those forms, I just sign them and pray. But even so, removing tax issues from the conversation, the kind of expertise required to do my monthly bills is ridiculous and getting worse.
Take medical bills. I have three kids, so there’s always a few appointments pending, but it’s absolutely amazing to me how often I’m getting charged for appointments unfairly. I recently got charged for a physical for my 10-year-old son, even though I know that physicals are free thanks to ObamaCare.
So I call up my insurance company and complain, spend 15 minutes on the phone waiting, then it turns out he isn’t allowed to have more than one physical in a 12-month period which is why it was charged to me. But wait, he had one last April and one this April, what gives? Turns out last April it was on the 14th and this April it was on the 8th. So less than one year.
But surely, I object, you can’t ask for people to always be exactly 12 months apart or more! It turns out that, yes, they have a 30-day grace period for this exact reason, but for some reason it’s not automatic – it requires a person to call and complain to the insurance company to get their son’s physical covered.
Do you see what I mean? This is not actually a coincidence – insurance companies make big money from having non-automatic grace periods, because many people don’t have the time, the patience, and the pushiness to make them do it right, and that’s free money for insurance companies.
There are the (abstract) “rules” and then there’s what actually happens, and it’s a constant battle between what you know you’re paying for which you shouldn’t be and how much your time is worth. For example, if it’s less than $50 I just pay it even if it’s not reasonable. I’m sure other people have different limits.
I see this as a systemic problem. So this isn’t a diatribe against just insurance companies, because I have to jump through about 15 hoops a month like this just to get my paperwork sorted out, and they are mostly not medical issues. This is really a diatribe against complexity, and the regressive tax that complexity projects onto our society.
Rich people have people to work out their paperwork for them. People like me, we don’t have people to do this, but we have the time, skills, and patience to do it ourselves (and the money to buy takeout while we do it). There are plenty of people with no time, or who aren’t organized to have all the information they need at their fingertips when they make these calls, or are too intimidated by customer service phone lines to work it out.
And, as in the example above, there’s usually a perverse incentive for complexity to exist – people give up and pay extra because it’s not worth doing the paperwork. That means it’s always getting worse.
Bottomline: you shouldn’t need to have a college degree and customer service experience to do your bills. I’d love to see an estimate of how much more in unnecessary fees and accounting errors are paid by the poor in this country.