Diary

HEALTH CARE - SO EASY A CAVE MAN CAN DO IT

HEALTH CARE – SO EASY A CAVE MAN CAN DO IT

1 – Restrict punitive damages in malpractice suits to $750,000.
2 – Enact a federal coding standard… require all medical insurance companies to use the same system. If the industry won’t standardize itself, this is an appropriate role for the federal government.
3 – Repeal all laws that restrict which companies can operate in certain states.
4 – Prohibit employers (including government) from providing health insurance for employees. Instead, require them to provide a cash amount consistent to what they are currently paying for the policy today.

This allows all insurance companies to operate anywhere, with no protected territories.
This eliminates unnecessary overhead due to proprietary legacy billing systems.
This eliminates the motive for trial lawyers to jack claims to get rich. Trial lawyers can’t sue someone for 85 bazillion dollars for having a sponge sewn up inside them. Consequently, malpractice insurance is cheaper.
Employers no longer have the overhead associated with administering a health care benefit.
Each person/family can now go out and buy their own policy.

5 – Abolish Medicaid and Medicare.
6 – Establish a reasonable income limit (use current Medicaid eligibility guidelines + 20%) and give the poor a voucher to go buy their own policy.

Cost to enact? The government will need a small bureaucracy to administer the voucher program. This would best be handled at the state or county level and should be funded federally with some of the money that we no longer spend on Medicaid or Medicare.

Benefits: Former state dependents (Medicaid recipients), now become empowered consumers. They probably can’t add more cash to the amount of their voucher to buy an upscale policy. Many of them will become ruthless price hawks, trying to get the most coverage for that money.

A basic flaw our current system is that my health insurance does not work for me. They work for my employer. If they don’t give me the service I want, I have no recourse. Under the plan I listed above, every insurance company will be responsible to every customer. They will be forced to compete in a market that they had previously not. If Single Mom has Allstate health insurance, and Geico offers free dental, don’t you think she’ll switch? If Busy Businessman is getting hassled trying to get his claims paid by Nationwide, don’t you think he’ll find a hassle free company? It’s self policing.

Stigma – Do you know how hard it is to find a dentist that takes Medicaid? Some folks are also embarrassed having to tell someone that they are on government assistance. This plan removes that stigma. No health care provider will know how you paid for your insurance.

Some government oversight is in place because insurance companies will have to justify rate increases (affects the cost of vouchers) to Congress.