HEALTH CARE REFORM: A WORKABLE SOLUTION

So what we have to do is figure out a way to maintain the integrity and quality of our health care system while making sure affordable insurance is available to everyone. Since what I am going to propose is based partially on private insurance, insurance providers must base rates on a national pool rather than state pools, and the rates offered must be standard to all persons regardless of age or pre-existing condition. In addition, rates paid by companies who offer health care benefits cannot be less than those rates paid by individuals purchasing health care in the open market. This will eventually move insurance coverage costs from companies to individuals.

1) Everyone is responsible for the first $5,000.00 of medical expenses each year. This can be funded several ways: a) Insurance companies can offer policies to individuals to cover portions of the first $5,000.00 with premiums being tax deductible; b) People can take advantage of Health Savings Accounts contributions which are tax deductible; c) or folks can just wing it, and be subject to regular collections procedures for nonpayment.

2) Private insurance companies will then offer policies to all US citizens, and all US citizens over the age of 18 will be required to purchase health insurance. No health insurance, no driver’s license or income tax refund. These policies will be designed to cover health care costs between $5,000.00 and $500,000.00. Deductibles may vary, and citizens can use unused portion of the Health Savings Accounts to pay for the deductibles. Insurance companies must sell to all takers with only some variation in rates. Item 3 will relieve them of unlimited costs for those with pre-existing, serious conditions.

3) The Federal Government will offer a Medicare type program for all health care costs over the $500,000.00 with premiums paid as Medicare premiums are currently being paid. Deductibles should be imposed, and private insurance companies may offer supplemental policies just as they do in Medicare now for seniors. In addition, the government can incentivize private re-insurance companies from whom the government can buy re-insurance to spread the risk and get the liability off of the government balance sheet.

4) For the working poor and welfare classes, the government can expand its Medicaid programs to benefit these folks.

5) The Federal Government could work with private companies such as Walmart, Walgreens, and other such national entities for the establishment of clinics to handle routine type matters such as colds, flu, flu shots, and other routine wellness matters. Walmart is already doing this.

The above does a number of things. It makes individuals aware of the cost of health care which will help to drive the cost down for most services as people shop for the best deals. It gets the burden off corporations to supply health care benefits. It allows the professionals to handle the bulk of medical insurance in care as it currently does. It relieves the insurance companies of extraordinary medical expenses making it easier to insure everyone who needs the insurance. It spreads the risk among the entire population. And finally, it allows the government to provide a mechanism for catastrophic care with companies who specialize in re-insurance issues while getting the obligation off of the government books.

Think it will work? I do. If only I could get this to the people who make the decisions.