The private sector can do it with the right targeting policies
The private health care system is not bankrupt. Provides excellent patient care. What breaks is the cost of the service.
Before the use of health insurance became widespread, the market determined the prices. The doctor would determine at what price he could provide the service. The patient would determine if he was willing and able to pay the price. When a third party became involved, such as an insurance company or the government, the price increased up to the amount of the third party’s ability to pay.
The government decided to increase the number of people who were buying health insurance. Under pressure from insurance companies, businesses, and the medical industry, the government decided to make health insurance premiums tax deductible for businesses and individuals. Of course, this sparked a rage to create health insurance policies that had very low deductibles.
The problem of higher medical costs each year is created when insurance companies can increase insurance premiums each year to pay for the higher prices of the medical establishment. Higher medical costs are also caused by low deductible insurance policies.
When the patient uses the benefits of the insurance policy, they are not concerned with the price of medical services, only with the fact that they are proud of themselves for making the smart decision to purchase health insurance and that they are getting the benefit of your money. to worth. This consumer attitude allows prices to rise. If they have chosen a low deductible insurance policy and it is paid in whole or in part by the employer, they are further disconnected from feeling the cost of medical expenses. The fact that he/she or the company is allowed a tax deduction, equal to the amount of the annual premiums, takes away from the premium payer any desire to compare prices.
It would be better to increase the amount of the deductible and encourage the use of Health Savings Accounts (HSA). HSAs must be fully tax deductible up to the amount of the annual insurance deductible each year. The government created HSAs to encourage people to save money for future medical expenses and to encourage the use of high-deductible health insurance policies. Health insurance premiums should not be tax deductible by employers and private citizens.
To level out the cost of health insurance premiums, private citizens and the self-employed should pay the same amount as employers and employees of large companies. Insurance companies should be encouraged to make this change so that more people buy health insurance and insurance companies can reduce premiums by spreading the risk among a greater number of people. people.
Since health insurance premiums are not tax deductible, employers, individuals, and the self-employed are more likely to shop around to get the best deal on health insurance premiums and policy benefits. It will encourage insurance companies to be more diligent in their negotiations with the medical industry, because the buyer of health insurance would be more sensitive to the price of premiums. As more people buy health insurance, insurance companies will be less at risk of having to pay money for benefits and therefore will be able to lower health insurance policy premiums.
HSA health insurance policies should be used nationwide, so we don’t repeat the same mistakes of the past. Preventive care benefits must be available without payment of a deductible amount.
HMOs and government-run health programs are slow to provide services because a medical board or primary care physician must first approve medical procedures. Central medical programs in other countries have shown this to be true.
Insurance companies should not be allowed to deny health insurance to a patient with pre-existing conditions. The best thing is to include the entire population in the health insurance system, in this way the risk is distributed among the largest number of citizens.
Because the deductible amount will increase with this plan, instead of the government directly paying 100% of the medical expenses of the working poor, it must match, dollar for dollar, every dollar placed in the HSA by the individual or family , up to the deductible amount. The same policy should apply to insurance premiums. Money could only be withdrawn, with a debit card, used by an approved medical office or hospital and arranged with the approval of the patient. Both the patient and the medical center would need to enter their PIN number in order for the money to be withdrawn from the HSA.
If a person does not have an immediately life-threatening illness or injury, the hospital should be allowed and encouraged to deny the patient medical care after being seen by a doctor, intern, or nurse on a ward. detection. The hospital should then give the patient directions and information about the availability of the nearest urgent care unit. Advice to see a doctor the next day is generally not good advice due to the doctor’s use of the appointment system.
Computers can also be created to send vital signs to a doctor or nurse so they can determine if there is an emergency.
With the patient responsible for paying the bill, outside of their HSA, due to the high deductible, they will be encouraged not to abuse the system and seek help at the appropriate facility. Hospital emergency rooms would then be available to patients who have a life-threatening illness or injury.
Treatment of non-life-threatening illnesses or injuries in hospital emergency rooms is a major source of money for hospitals. Hospitals should be denied payment if they do not follow this policy change.
Unless everyone involved, from the patient, to the doctor to the hospital, has a bit of “skin” involved, the price of healthcare will continue to rise at a faster rate than other costs in the economy. A perfect example of this is the mortgage industry. Banks, mortgage brokers and financial institutions were not exposed to the risk and eventual cost of the housing bubble after selling the mortgages to investors and government-backed agencies.