(Newswire.net — October 24, 2013) Chicago, IL — The US is in need of healthcare reform as US healthcare costs 3 to 12 times what it costs in any other country. US healthcare is ranked 37th by the World Health Organization. Healthcare reform did not address healthcare cost. It went after insurance not healthcare costs and this is a flawed approach.
Health insurance is an easy target.
The US system is based on healthcare services being paid by health insurance with patients being taken out the equation. It is setup so that doctors and medical providers have no incentive to consider costs. The system encourages medical providers and patients to find ways to work the system for services.
There is no control on medical charges.
The only control is insurance companies negotiating for lower costs. A lab test that might actually cost $3 might be charged $150 to the patient. Unlike the rest of the economy and free market their is no incentive for the buyer/patient to question this. US Healthcare exists in its own economy.
Affordable is a nonsense word. What is affordable for one person is not necessarily affordable for another person. People have different values and so may find a $40,000 car affordable but not a $50 pair of shoes. On the other hand a person might find a $1000 pair of shoes is affordable but not a $10,000 car. What is affordable changes constantly for the same person at different times and situations.
One way to see the US healthcare system is to apply the system to another business.
Let’s use the automobile business as an example. Let’s say we passed the Affordable Car Act.
In the Affordable Car Act politicians campaign against auto financing and auto insurance industry. They talk about how people are hurt because they go in to buy their Lexus LS Hybrid and the evil financing company would not finance them. They tried to get auto insurance but the auto insurance company declined claiming they had 3 dui’s. The solution is the Affordable Car Act.
The government also says that auto mechanics are an unnecessary expense as you can buy parts and there are books so auto mechanics serve no purpose. They setup Parts Navigators. These navigators do not need to be college educated. They do need to take a 20 hour course. They need to demonstrate they have no bias or give any recommendations.
Person calls in “I think I need new tires”
Navigator can give them tire options. “There is tire A for $22, tire B for $45, tire C for $75 and tire F for $120”.
Person “What tire is best for my Lexus?”
Navigator “I can’t make recommendations.”
Person “What type of tires are they?”
Navigator “They are tires. Those are the prices”
Person “Will the tire fit my car, my driving needs and which is safer?
Navigator “I can’t make recommendations.” (Translation I haven’t got a clue and they don’t want anyone here that has a clue.)
Person “Can I talk with someone that has experience and training with tires.”
Navigator “I took a 20 hour course.”
Now the person excitedly goes to get their affordable Lexus LS Hybrid.
Now, these are affordable for everyone. No need to qualify as everyone is getting one so the price is the same for everyone. They hear they can get the car for the affordable price of $200 a month. The car costs $120,600 but no problem your financing company can’t turn you down even though you income is $64,000 and you are behind on your payments. When you last checked it would have cost $1846 a month but now is affordable and you can’t be turned down.
You come to get your car and there is a huge line. You wait and you get there ready to get your car. You get the price and it is $2478 a month but you can’t be turned down. You are outraged. That is not affordable. It was the financing that kept me from having the car.
You feel they are charging ridiculous costs for the car. The cost you pay has nothing to do with the fact the car costs $120,600. You need the car and affordable to you is $200 a month. If you can’t have it, it is completely the fault of the finance company.
US health insurance is not really insurance.
The US system came out of WWII. In WWII wages were frozen. Employers could not hire people and pay them better. They gave them benefits. An inexpensive benefit was to offer the employee a benefit where they and their family could see a doctor or go to a hospital. It was an employer benefit.
Later it became monies that needed to be administered. Insurance companies would administer the monies. You can tell if something is not insurance as insurance is to cover a risk that is unexpected and not wanted. If a person says they can’t wait to use it, that is not insurance.
The government did not address the cost of US healthcare.
The government did not address the role of government, the role of private companies and most importantly they did not address the cost of US healthcare. The math does not work. If the US healthcare costs came in line with the rest of the world the problem would go away.
They did not address the message the pharmaceutical companies, hospitals and many medical providers put out “You need this because I say so and don’t worry or question it is as your insurance will cover it.”
Michigan had established a system that was working better than most.
Now, the government has eliminated those that knew how it worked and could get things done, insurance agents. Insurance agents only get paid by succeeding in helping a client. It rewards those that get the job done. The new system does not address healthcare costs and eliminates any value in getting the job done.
John K Arnold is a Newswire featured author
John K Arnold Insurance
JKA Marketing, Inc