Healthcare costs are crippling Americans and or health care system and insurance are ready to implode. The Affordable Care Act (ACA), otherwise known as Obamacare, attempted to make healthcare more available and affordable. It addressed some problems like of making insurance available for those with pre-existing conditions, but blew costs sky high. Some of our most vulnerable in society cannot afford ACA required insurance. Obamacare costs, exorbitant deductibles, and skyrocketing insurance premiums have put us on the precipice. Every American should be able to obtain high quality, affordable health care, and the government’s role is to ensure a fair playing field. Healthcare and insurance should be simple to understand and affordable for everyone. We think there is a better way.
The New American Healthcare Act –
Proposed – a new program that begins with Health Savings Accounts (HSA) established with conservative mutual fund offerings. Deposits into these accounts would be tax exempt and required payroll deductions starting at no less than 4%. The percentage is reduced to 3% after $25,000 accumulated savings, 2% after $50,000, 0% after $100K. Accounts could be fully funded in advance if desired and grow with the economy and market. These funds could be used to pay medical expenses only. All patients would be billed directly* and charged the same “best rates” charged to insurance companies.
Insurance Purchase Required – Catastrophic Health Insurance would be a required purchase for all Americans (like car insurance). Deductibles would vary but not exceed the amount in a customer’s HSA. Individuals would pay deductibles from their Health Savings Accounts. Deductibles could not exceed 50% of the families annual household income regardless of the amount in their HSA. Insurance premiums would be reduced as Health Savings Accounts grow to cover deductibles. Customers could buy policies with higher or lower deductibles. Insurance would cover 100% of expenses once the HSA is exhausted. Premiums would be lower for those with higher amounts in their HSAs, so consumers would have an economic incentive to use their HSA monies wisely.
All health care providers would be required to publish their “best” costs. Providers would be required to charge everyone the same price. Providers would also need to provide an estimate of treatment care costs at the initiation of care except in emergencies.
Insurance companies would be allowed to:
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Offer different policies offering different coverage. (e.g. Eye care, hearing care, pregnancy, etc.)
Insurance companies would NOT be allowed to:
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Deny coverage of any physician recommended care, required test or treatment.
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Deny coverage for pre-existing conditions
Hospitals and Physicians would be required to submit detailed invoices itemizing costs and care provided to patients for approval. Upon patient approval, hospitals would submit invoices to respective insurance companies for payment. Insurance companies would retain the right to deny payment of unnecessary charges. Patients would NOT be responsible for denied charges.
As Health Savings Accounts grow to cover deductibles insurance premiums would be reduced as individuals could more easily afford higher deductibles. Patients and their physicians would decide their care, not faceless insurance or government bureaucrats.
American’s need to participate in approving medical invoices because they need to understand they have a vested interest in protecting their HSA in order to keep their insurance premiums down. They need to be active participants and owners of their medical care.
Medicare Buy-In
To foster greater competition, Americans would also have the option of buying into Medicare.
Hospitals and physicians who provide efficient, high-quality and necessary care would continue to thrive. Wasteful, unnecessary care would decline as hospitals and physicians would not be reimbursed for it. This again puts Americans in control of their own healthcare, choice of providers and costs.
There is an unfortunate old saying that goes: “Wherever there is suffering there is money to be made.” That should not be the case in American health care. It is one thing to be generously compensated for expensive medical training and skills. It is quite another to profit over others’ misfortunes. This outline provides a framework for a fairer, more affordable, New American Healthcare system delivered to fulfill Need not Greed.