The first thing that people should know is that they have to much insurance. That is why the "administrative costs" are so high. There are two parts to health insurance; insurance that covers major medical issues (i.e. heart attacks, cancer, etc) and that which covers minor health issues (i.e. colds, stomach virus, etc). The former is prohibitavely expensive and generally happen to suddenly to make financial plans. The later is inexpensive in comparrison and can be easily paid by 85-90% of Americans. However, most Americans mistakenly believe that they need health insurance to cover the inexpensive care on top of the expensive care. By purchasing so much coverage, they pay another entity to pay bills that they may or may not get.
In my case, I had a job that couldn't provide health insurance so I purchased my own insurance in the open market. I had the choice of full coverage or major medical coverage. The difference in price was $210 a month. The difference in coverage was $30 copay or no coverage before $5,000. So, I could pay $2,500+ a year for doctor's visits that I may or may not use only to have a $5,000 deductible plus a 20% copay after the deductible if I had a major medical event plus copays or I could save the $2,500+ and maintain the same deductible with a 0% copay (i.e. no money out of my pocket) after the deductible.
So which is cheaper? In order for me to save money on the full coverage plan, I would have to visit the doctor an average of 1.5 times a month AND I couldn't have a major medical event. If I had a major medical event, I had better coverage with the major medical plan than with the comprehensive plan.
Imagine if we could get 200 million people to save $2,500 a year. We, as a country would save $5,000,000,000. Estimates put health care spending around $1.7 trillion. Just by eliminating full coverage for most of the country, we could reduce health care spending to $1.2 trillion.
All that to support my first step in reducing health care costs would be:
1) Ban comprehensive health insurance.
2) Set reasonable limits to medical malpractice lawsuits, with exceptions for systemic ignorance and or mallace.
3) Require insurers to accept all medical conditions when approving a new policy holder if that policy holder, within the past 90 days, held health insurance in good standing (that means they made their payments). Potentional policy holders that have not had health insurance should be subject to existing medical conditions clauses to prevent fraud.
4) Open insurance sales acrossed state lines to increase competition.
5) Bill all recepients for health care services. If they cannot pay, require public service as a form of payment. The doctors and nurses improved the recepients life, the least they can do (if they can't pay) is to improve the lives of others in return.
6) Enforce immigration laws. (This will also help with schools, jobs, housing, crime, and a whole host of other issues)
In my case, I had a job that couldn't provide health insurance so I purchased my own insurance in the open market. I had the choice of full coverage or major medical coverage. The difference in price was $210 a month. The difference in coverage was $30 copay or no coverage before $5,000. So, I could pay $2,500+ a year for doctor's visits that I may or may not use only to have a $5,000 deductible plus a 20% copay after the deductible if I had a major medical event plus copays or I could save the $2,500+ and maintain the same deductible with a 0% copay (i.e. no money out of my pocket) after the deductible.
So which is cheaper? In order for me to save money on the full coverage plan, I would have to visit the doctor an average of 1.5 times a month AND I couldn't have a major medical event. If I had a major medical event, I had better coverage with the major medical plan than with the comprehensive plan.
Imagine if we could get 200 million people to save $2,500 a year. We, as a country would save $5,000,000,000. Estimates put health care spending around $1.7 trillion. Just by eliminating full coverage for most of the country, we could reduce health care spending to $1.2 trillion.
All that to support my first step in reducing health care costs would be:
1) Ban comprehensive health insurance.
2) Set reasonable limits to medical malpractice lawsuits, with exceptions for systemic ignorance and or mallace.
3) Require insurers to accept all medical conditions when approving a new policy holder if that policy holder, within the past 90 days, held health insurance in good standing (that means they made their payments). Potentional policy holders that have not had health insurance should be subject to existing medical conditions clauses to prevent fraud.
4) Open insurance sales acrossed state lines to increase competition.
5) Bill all recepients for health care services. If they cannot pay, require public service as a form of payment. The doctors and nurses improved the recepients life, the least they can do (if they can't pay) is to improve the lives of others in return.
6) Enforce immigration laws. (This will also help with schools, jobs, housing, crime, and a whole host of other issues)