NFL Players Health Insurance: The Basics

[Anybodyhome]

I'll be the first to admit I know little about insurance other than when I get a bill for something I needed done and the insurance paid for part of it.

Because several folks have asked just how the NFL players health insurance works, I'm simply going to put the info out there...

Not unlike most of our health insurance plans, the NFL has individual and family coverage paid in part by the league and part by the player. In addition to the standard term insurance, the NFL Players Association (NFLPA- the union) also provides an "NFL Players Insurance Plan" which works similar to a pension, except it's for health insurance.

http://www.nflplayers.com/Articles/P...ving-the-Game/

Essentially, once vested in this plan, an NFL player is covered for 5 years after he leaves the game. What I could not find is what it takes to become vested as a player.

Where does the league fit in all of this? Individual teams pay out an estimated $13M per year in player benefits above and beyond the salary cap that used to be. None of the nearly 2/3 revenue sharing the players received goes toward a health insurance plan. So, each player has a payroll deduction for his share of health care, the teams kick in for their players and the union has their plan to cover former players until 5 years after they're out of the league.

Does this help in understanding why the owners want to renegotiate the current revenue sharing plan? It makes perfect sense in my mind now that I've educated myself about where the money comes from and where it goes. In 2009 the NFL salary cap was $127M per team. On top of that salary cap, teams were putting out in excess of $13M a year in "player benefits" (read: the employer-paid portion of health care). Now, this $13M figure I have is from 2008, so we can only guess what that number was in 2009 and 2010.

The league also has its own revenue sharing plan among the teams. This is a $100M pool of money the larger market teams kick in to keep the little guys afloat. The Buffalo Bills, Minnesota Vikings and several other smaller market teams basically subsist from these funds. For example, the Minnesota Vikings were estimated to have generated $30M less revenue in 2009 than each Chicago, Detroit and Green Bay, all three of which have upgraded or built new stadiums in the past 10 years. While the Vikes normally receive $15-20M in revenue sharing funds, that amount of money about cover those "player benefits" we were discussing earlier.

So, the players get about 57% of a team's revenue, the teams pay another $13M or so in player benefits and the teams have to open their wallets to keep their fellow owners afloat. For as much money as these owners are giving everyone else, I'd probably want to renegotiate a few things myself; and I'd start with the biggest expense of them all- the players.

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[Guild]

It's a complex issue that I'll admit I struggle to wrap my head around, but I think that the guys making league minimum who get messed up for life playing in the NFL need to be assisted in some way after leaving the NFL.

[GRWatcher]

Players are fully vested after playing 4 years in the league. The average career is 3.6 years. If they're vested, health benefits continue 5 years past retirement. If they're not vested they continue to August 31 of the year following their stopping play.

For many spectators, the thought of a professional athlete needing help with medical insurance can sound ridiculous. Sure, they make millions of dollars a year, or at the very least a few hundred thousand, so they can just buy their own health coverage. What most people don’t realize is that health insurance for most NFL players is much more expensive than that of the average American, and that’s already expensive!

Injuries don’t just disappear when a player retires. These preexisting conditions linger and hamper former athletes for much longer, sometimes until they die. Not to mention some require ongoing treatment because they’re constantly living in pain. All of these factor in driving up insurance premiums.

One of the underlying issues is that players want better health coverage because they are becoming increasingly aware of the dangers they could face in retirement.

While superstars like Peyton Manning, Drew Brees and Tom Brady may not necessarily need the financial assistance in their post-career lives, there are literally thousands of current and former NFL players that do.

http://www.goinsurancerates.com/health-insurance/nfl-players-want-better-health-insurance/

This is from 2007 but is a slide show presentation that gives a good history of NFL players' health insurance.

http://business.illinois.edu/d-sinow/fin434/docs/NFL%20Retirement.ppt#256,1,NFL Retirement Plans “What’s all the fuss about?”

And here's 2 websites listing the current health benefits for RETIRED players.

https://www.nflplayercare.com/

http://www.nflalumni.org/BenefitsampServices/HealthcareBenefits.aspx

[Snake]

Am I the only one that finds it funny that people that are making 6 figures and above are worried about health care? I would understand if it kicked in after they retired or injured like a retirement plan, but come on they can pass on the gold plated grill and pay for there own insurance when not on the field.

Most people can afford heathcare on 50,000 dollars or more. I know I do and I dont come close to that figure.

[GRWatcher]

Am I the only one that finds it funny that people that are making 6 figures and above are worried about health care? I would understand if it kicked in after they retired or injured like a retirement plan, but come on they can pass on the gold plated grill and pay for there own insurance when not on the field.

Most people can afford heathcare on 50,000 dollars or more. I know I do and I dont come close to that figure.

Did you even bother to read the whopping 3 posts in this thread? Or are you just here to spout your 26-year-old's opinion without reading or thinking?

Here, read this. Slowly, so you don't hurt yourself.

For many spectators, the thought of a professional athlete needing help with medical insurance can sound ridiculous. Sure, they make millions of dollars a year, or at the very least a few hundred thousand, so they can just buy their own health coverage. What most people don’t realize is that health insurance for most NFL players is much more expensive than that of the average American, and that’s already expensive!

Injuries don’t just disappear when a player retires. These preexisting conditions linger and hamper former athletes for much longer, sometimes until they die. Not to mention some require ongoing treatment because they’re constantly living in pain. All of these factor in driving up insurance premiums.

One of the underlying issues is that players want better health coverage because they are becoming increasingly aware of the dangers they could face in retirement.

While superstars like Peyton Manning, Drew Brees and Tom Brady may not necessarily need the financial assistance in their post-career lives, there are literally thousands of current and former NFL players that do.

When players are retired most no longer make millions. In fact, the majority of players do not make millions in their 3 years in the NFL. And now the owners and league want an 18 game schedule.

Have you even tried to buy insurance with a major pre-existing condition? Insurance not subsidized by an employer? Or after retirement? Or tried to cover major health issues without insurance?

Well, until you do, STFU. I don't find anything about this funny at all.

[rayzor]

Am I the only one that finds it funny that people that are making 6 figures and above are worried about health care? I would understand if it kicked in after they retired or injured like a retirement plan, but come on they can pass on the gold plated grill and pay for there own insurance when not on the field.

Most people can afford heathcare on 50,000 dollars or more. I know I do and I dont come close to that figure.

they may make 6 figures, but that will be the most high paying job they ever get. it's all downhill from there in a big way. most will be lucky to find $30k a year after that, meanwhile after their short stints in the league, their health care expenses by the time they get done with their long post NFL lives will probably reach up in the high 6 figure range. they are hard to insure and they will not only have to deal with bad knees and other parts of their bodies that have broken down after years of taking beatings. even just the workouts they put themselves through are far beyond what bodies are intended to do. it all takes a long term toll on them.

then you have the issue of concussions which they are always at risk for, regardless of how long they play in the league. and you have to know that they don't report all instances of concussions. only the most severe are reported by the players. if they can get back out on the field, they are going to because they can easily be replaced. there are studies done on former pro football players and well more instances of early onset parkinson's disease as well as early dementia and alzheimers that they will have to deal with the rest of their life. they are at a pretty high risk after 35 and that risk goes up at a lot faster rate than those of us who haven't put their bodies through 25,000 hits.

they need assitance from somewhere to help take care of that. it will either be the league or medicare/medicaid. personally, i would rather the league help foot the bill rather than taxpayers. they are hard to insure and if you are willing to find an insurance company willing to take on the risk of someone who already has massive pre-existing conditions, they will also have to consider now how prone they are for long term problems brought on by brain injuries. insurance companies want no part of that and if they do take on the risk, they'll make you pay much more than any of us.