I first posted a blog like this on Friday, April 13, 2012 . It is even more relevant today.
I had to put expensive new tires on my vehicle. I wish they were covered by insurance.
Just changing the oil is expensive.
That should be covered too. With
the current cost of gas, filling the tank is expensive. Why not have all these normal, routine, and
maintenance items covered by insurance?
Let’s take a look at how this would work. When we go into any auto repair or
maintenance facility, we would give them our auto insurance card. With gas stations, maybe the insurance card
could be like a credit card so we can just swipe the card. That would be really convenient.
After we receive the auto service or product like gas, the retailer
providing the product or service will bill our insurance company. The insurance company will then review the
claim to determine if it is covered.
If covered, the insurance claims person will check if you have met your
deductible and what percentage is your co-pay portion. The insurance company will then notify you
and the retailer submitting the claim how much the insurance company is paying
and how much is your responsibility. After
the retailer knows how much of the claim your responsibility, they will bill
you.
Obviously, the insurance company will have to raise your insurance
premiums to cover the additional claims.
There will also be substantial costs for handling all the additional
claims, which will require more employees and more insurance company
facilities. The insurance company will
also need to increase profits.
There will also be added expenses for the retailer who provides you
products and services for your vehicles.
They now have additional costs for submitting claims to your insurance
company and then billing you for the portion of the claim that is your
responsibility. This will add to the cost
of serving you.
There is also a monetary cost of doing business for the retailer. More working capital will be required, as it
will take longer for the retailer to get paid for the product or service. The cost for them will have to go up to cover
these new costs of doing business.
Costs will also go up due to lack of competition. Why would you as a consumer care how much you
are paying for your gas or maintenance?
Why would you care what kind of gas mileage your vehicle gets, or how
much you drive? The gas and maintenance
is covered by insurance anyway, so who cares?
Who cares if insurance premiums increase?
How much will your total vehicle operation and maintenance costs
increase? It is safe to expect an
increase of 300 to 500 percent. Some
people won’t care because it is so convenient, or they do not understand how
much it is increasing the cost of operating their vehicle. Does this sound ridiculously stupid? Yes, but why should it? This is exactly what we are doing now with
first-dollar-billing medical insurance.
Why doesn’t that sound stupid?
We can never control health care costs until we stop paying normal,
routine, and maintenance heath care costs with insurance. Insurance has created the problem. We can’t solve the problem with insurance.
We must move to true major
medical insurance and medical savings plans to control health care costs. If we don’t, we will eventually see government
provided health care, and I don’t mean “Single Payer.” “Single Payer” still has the same claims
processing costs as present medical insurance coverage, and we know the government
has never handled things as well as private industry.
God bless President Trump and guide him
to make America great again.
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