Disclaimer: I know very little about the inner workings about the health care system. This perspective is completely from a consumer experience.
Two years ago I took out a new health insurance policy. I have a health saving account (HSA) in combination with an emergency health insurance policy. Here’s how it works. I pay a much smaller premium but the first $2500 of medical expenses are out of my pocket. I pay money pre-tax into the HSA and my medical expenses are paid from that account. That means I have no insurance until I’ve had $2500 of expenses for the calendar year.
This changes how you go to the doctor. Now instead of a co-pay I pay the full bill for a visit which is usually around $150. Then I pay full price for the prescription too. I no longer go to the doctor for every ache, cough and cold. Usually they tell you to wait it out anyway. In my mind, this is a good thing for the health care system. It puts more ownership in the hands of the consumer because you feel the cost when you go.
Now here is the problem. What I’ve discovered is that there are two pricing structures. One that doctors and pharmacies charge the insurance company and one that they charge the uninsured who pay in cash. For example, I went to the pharmacy to get a prescription for my son who had a ear infection. The original charge was over $100 for a brand name medication. We argued for a generic. The first price quoted to us was $56. When the pharmacist found out we didn’t have insurance to cover it the price was changed to $32. So the cost for the same medicine was nearly double if you had insurance. And why not, I’ve heard the horror stories of paperwork and getting paid by insurance companies. I went to the Dentist two months ago. I told the dentist nothing would be covered but they wanted to try anyway. They felt guilty that I’d have to pay. I offered to pay in full and they said no we’ll try the insurance company first. Two months later they haven’t been paid and are ok with that because its normal. How can anyone run a business that way. Perform a service today and get paid months later? No wonder they have to charge more.
It seems to me increased ownership by the consumer would greatly benefit the health care system. Obama is proposing a national health care plan. On the surface it sounds great. Universal health care for all. I’m all for taking care of each other. Its the mandate of the church not the government but that’s a story for another time. The problem is that it increases the root problem of the system. More bureaucracy will inevitably lead to higher cost. Not to mention that employers will gladly dump their expensive group plans and force the government to cover even more uninsured raising costs even more and creating a monopoly. We all know that monopolies never equate to excellence. Competition breeds excellence.
What the government should do is make it easier for doctors to get paid by insurance companies and make it more appealing for consumers to take ownership in their own health. If you want healthier Americans, I think you motivate people by hitting them in their pocket books. I’ve started exercising more and eating healthier in part because it saves me money in the long run. That’s twisted that we care more about money than health but its true. The national health care plan will inevitably have health guidelines Americans are expected to live by and when you don’t you’ll be penalized. Just look at Europe. I propose a government reform program to streamline the insurance process. I also propose that Americans start bearing the burden of their own medical expenses rather than expecting someone else to pay. Would you rather have the expensive employer plan or would you rather have the extra cash in your hand and come up with your own solution for health care like I have?
We enjoy the best health care of any people in the world. Whatever happens I hope we strive hard to keep that value and provide the best possible care to many American generations to come.
1 Comment
July 7, 2009 at 9:00 am
Doug this is a good point. We should be the ones taking ownership. I couldn’t agree more.
P.S. Monopolies may not be good for business but it is a great board game.