Fixing Healthcare
September 10, 2009
While it is easy to criticize a plan it is harder to come up with an alternative. So here is what I’d do:
Remove Insurance From Routine Maintenance
I believe you should purchase insurance to cover you in the worst case scenario and not to cover your office visit because you have a sore throat. This would lower costs because primary care physicians would have to truly compete on price and service. Dental care has vastly improved over the last 20 years because insurance only has a limited influence there. So most consumers know how much their root canal costs and there is a vast disparity in what dentists charge for their services. This reform would also lower costs for primary care physicians as they would no longer need to employ 2-3 full time people simply to process insurance claims.
Tort Reform
The physicians who I represent are scared to death of being sued. To avoid being sued they practice defensive medicine and tend to order every test they can in order to be sure of their diagnosis. We need to realize that doctors are human beings and medical science is not perfect. Doctors are capable of making honest mistakes and should not live in fear of making them.
Expand HSA’s
I have a HSA meaning the first $5,800 in healthcare I use is on me. This allows me to keep my premium low and have insurance for the worst case scenarios. HSA’s are deductible for taxes making it easier for me to set funds aside to pay my deductible. Because I am responsible for the first $5,800 of my healthcare costs I am much more aware of what things cost and feel like I make better decisions in using healthcare resources.
Refundable Tax Credits
As I see it we have an issue with people who have pre-existing conditions and those who simply cannot afford insurance. A refundable tax credit can be offered to partially or fully subsidize their plans based on need. This way we have covered those who are in need of coverage without having the government take it over.
Shift Tax Benefits to Individuals vs. Business
The problem with the current system is most people’s insurance is tied to their job. I’d rather have the ability to have individuals customize their coverage and get the tax deduction rather than being forced into a group plan. I also believe wages would go up as employers do consider the cost of subsidizing your insurance when they consider how much to pay you. Again, this is another step to force individuals to be responsible for their healthcare and make better decisions rather than simply turn the decision making over to someone else. When we are aware of costs we tend to create a better marketplace that responds to our concerns.
