Well, they went and did it-passed "Health Care Reform." This new law will increase costs and does absolutely nothing to improve health. What should have been done? Here is my proposal:
Using basic economic principles (supply and demand)and understanding that health insurance was never intended to pay for routine care; the following makes sense.
Every person in the U.S. is issued a Health Savings Card (HSC) with a $5000 value. People would contribute pre-tax dollars into their accounts. Lower income people would get govt. grants to fill their accounts (in lieu of tax credits)based on a sliding scale on ability to contribute. This money would be used for routine care and can be used for any health related expense. Any money not used by the end of the year would be transferred to a retirement savings account (interest bearing).
Health insurance would only be for catastrophic illness/injury and would have a $5000 deductible (covered by your HSC). Once you have used up your HSC, the insurance would kick in.
This simple plan reduces costs in several ways. People have control of their health care spending and an incentive to spend wisely. Since they are basically paying with cash, administrative costs for providers will go down. Getting paid at the time of service versus submitting a claim and hoping it gets paid is a no-brainer for doctors. They can lower their costs to the consumer.
By allowing all licensed health care providers to be paid by the HSC, you now have increased the number of providers (increased supply) which also increases competition for your health care dollars. More competition means lower cost.
Other side benefits of this plan include; supplementing retirement (Social Security), reduced health care student loan defaults, and better health education. Since people will have control over their own spending, they will become more educated on staying healthy (prevention) and not waste their own dollars on unnecessary or ineffective treatments.
If you have questions or want more details, leave a comment below.
Showing posts with label health care reform. Show all posts
Showing posts with label health care reform. Show all posts
Monday, March 22, 2010
Tuesday, December 22, 2009
The Nightmare Begins-No Cure for Health Care
It is truly amazing that 60 U.S. Senators could support a 2000+ page bill that the vast majority of the population does not want, and haven't even read. Pressure from their leaders and "Pay Backs" should not be the sole reason for passing any legislation.
Hopefully, when this bill goes to conference it will be killed or at least stalled until the November elections. The constitutionality of this bill will/should be tested and hopefully stricken down.
Why is this such a bad bill? As I posted previously, this Health Care Reform Bill does nothing to promote health, reduce costs or improve our system in any way.
The tax and "Mandatory" purchase of insurance will drive the economy even further into recession. Health care will become more expensive and harder to get. Demand will rise (30,000,000+ new consumers) and supply will decrease (up to 30% of current doctors will quit practice or retire early). We are currently in a primary care shortage. Adding 30 million new consumers alone will overrun the system. Over worked Primary Care Providers (PCP's) will be worked even harder to meet the demand. I don't know about you, but when it comes to my health care, I want a doctor that is fresh, well rested, happy and well paid!
Since there will most likely be a public option in this reform, expect insurance companies to go out of business, as they cannot compete against the government. Public plans will most likely be based on a Medicare model which means a drastic cut in doctor and hospital income. Working 60-80 hours per week for a wage less than most factory workers, with potential malpractice liability and student loans pushing $200,000; why would anyone do this?
If doctors can opt out of the program, i.e. not accept insurance and treat patients on a strictly cash basis, many of the top physicians will probably do this. But now you have a situation in which only the "rich" can afford quality care, leaving the poor and middle class depending on the over-worked, under-paid insurance doctors for care.
So, once again, in the infinite wisdom of our federal government, trying to help the poor and uninsured, we may in fact be making the problem worse and increasing costs at the same time.
If you have any questions or comments, please leave below or send me an e-mail directly newcaredoc@aol.com
Hopefully, when this bill goes to conference it will be killed or at least stalled until the November elections. The constitutionality of this bill will/should be tested and hopefully stricken down.
Why is this such a bad bill? As I posted previously, this Health Care Reform Bill does nothing to promote health, reduce costs or improve our system in any way.
The tax and "Mandatory" purchase of insurance will drive the economy even further into recession. Health care will become more expensive and harder to get. Demand will rise (30,000,000+ new consumers) and supply will decrease (up to 30% of current doctors will quit practice or retire early). We are currently in a primary care shortage. Adding 30 million new consumers alone will overrun the system. Over worked Primary Care Providers (PCP's) will be worked even harder to meet the demand. I don't know about you, but when it comes to my health care, I want a doctor that is fresh, well rested, happy and well paid!
Since there will most likely be a public option in this reform, expect insurance companies to go out of business, as they cannot compete against the government. Public plans will most likely be based on a Medicare model which means a drastic cut in doctor and hospital income. Working 60-80 hours per week for a wage less than most factory workers, with potential malpractice liability and student loans pushing $200,000; why would anyone do this?
If doctors can opt out of the program, i.e. not accept insurance and treat patients on a strictly cash basis, many of the top physicians will probably do this. But now you have a situation in which only the "rich" can afford quality care, leaving the poor and middle class depending on the over-worked, under-paid insurance doctors for care.
So, once again, in the infinite wisdom of our federal government, trying to help the poor and uninsured, we may in fact be making the problem worse and increasing costs at the same time.
If you have any questions or comments, please leave below or send me an e-mail directly newcaredoc@aol.com
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