The Problem With Health Care Reform
In Part 1, I opined that health insurance could easily be addressed in a manner similar to automobile insurance coverage. I suggested that everyone would be covered by catastrophic health coverage with a high annual deductible & normal month to month expenses are paid out of pocket…much like when you fill your gas tank without the help from the ‘Good Hands’ people, a green lizard or a caveman.
Here I suggest how much and who pays what. As previously mentioned, everyone pays an affordable premium for a high-deductible catastrophic health coverage insurance policy. Now $5,000 in out-of-pocket expenses may sound expensive. However, all health-related expenses and insurance premium payments 100% tax deductible. Today, only companies can deduct the cost of health care but that would change. Plus, all existing Flex Plans and pretax incentive programs would still exist and would probably be enhanced in coverage and scope.
Additionally, co-ops and med-club memberships would surely appear to further reduce the out-of-pocket costs of routine check-ups and medical visits that would incent well being, healthy lifestyle and preventative care and checkups. (Doctor Sam’s Club? Costco Care?)
How much would this insurance cost? I imagine that a flat-rate premium would be established that would be universal for all. With everyone contributing to a universal coverage policy, the sheer volume of contributions would keep premiums low. And there would be no need to government intervention, just oversight. And of course, assistance for low-income families. Remember, we are happy to help people stay healthy! We all know it is far cheaper to help prevent than to fix and maintain. Another way to keep premiums low is there HAS to be some way to add penalties and fees for unhealthy lifestyle. Period! Political correctness stinks! Simply put, this would be a ‘fat tax’. If that offends, then think of it as a ‘really poor lifestyle choices’ tax.
People who voluntarily choose to be unhealthy (a matter of when, not if!) such as the significantly overweight, and obese, the cigarette smokers and other tobacco users, alcohol and drug abusers and ‘coach-potatoes’ will have to pay a premium for their unhealthy life-style choices. Simply put, choose healthy habits, pay less for health coverage as they are much less likely to file a claim. Chose unhealthy lifestyles, fine - but you pay for it, not those who chose to take care of themselves.
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