Do you want affordable health care, OR first dollar billing medical insurance? Does this sound like a dumb question to you? Maybe you still think you can have both. Politicians interchange the terms health care and medical insurance. The two terms are not interchangeable, and this perpetuates the confusion and delays addressing the real problem. Some people now predict potential problems with a medical insurance card that is not accepted and no good. As long as we don't address the couase of the problem, it is hard to get serious about a workable solution.
In 1965, my university insurance professor, Emmett J. Vaughan, first made me aware of the potential problem with first dollar medical insurance. Emmett knew his subject and was probably the best teacher I ever encountered. I reference Emmett in my book, Business Fits. I considered him a friend and he also was a potential investor in one of my business ventures. Emmett pointed out that for the premium cost of first dollar medical insurance, a person could buy major (catastrophic) medical insurance, put the difference in premiums in the bank savings account, and the money in the savings account could hire a CPA to handle all your healthcare bills, pay the healthcare providers, and you would still have money left over in the savings account.
First dollar medical insurance should actually be referred to as first dollar billing medical insurance because the policy does not pay until a deductible is met, but expense is incurred with first dollar billed for both the insurance company and the health care provider. Everyone should understand that this expense raises both the cost of health care and medical insurance without providing the consumer with any benefit except a false sense of security and convenience. It’s just common sense.
I have been talking and writing about this subject since before the Affordable Care Act. I feel like a broken record, but slowly and surely more and more people are being made aware of the problem. Obama Care has done a lot to speed up this awareness. “If you like your health care plan, you can keep your health care plan, period.” “If you like your Doctor, you can keep your Doctor, period.” Many people like myself questioned these two lies at the time. Obama Care may not have passed without these lies, but its just politics, so who cares?
Maybe enough people will be affected personally by Obama Care to force our elected officials to start addressing the real problem and start working on a real solution to affordable health care. I hope this happens before we have a complete government takeover of our health care. Catastrophic medical insurance and medical savings plans are the most probable solutions. Lets start talking about this real change. Cost savings of 40% are 80% are a real possibility. I understand the negative side of this solution is that it does not increase the size and power of the government. Personally, I think that is a good thing.
As a former Federal employee, I'm praying NOT to be effected by Obama care. Unfortunately, sooner or later everyone will be.
ReplyDeleteAll of us should have some responsibility for our own healthcare, either in the form of a deductible or copay. Without it, we tend to use it foolishly.