|
(HealthNewsDigest.com) – From our perspective as insurance brokers, the health insurance industry was never broken, just sprained. We definitely think the system needs a tune-up, with much less waste and fraud, but there are many ways that can play out and everyone involved needs to be responsible for a more positive outcome.
Unfortunately, we don’t believe the proposed public plan will work for a few basic reasons:
1. It will be expensive to set up and in the long run more expensive than our current system.
2. It will be clear that the public plan has many unfair advantages versus insurance companies.
3. People will realize that Medicare is NOT well run in terms of solvency. Medicare also illustrates that the government does health insurance badly from a business perspective. People will realize that there can be no more deficit enhancers if this country is going to survive financially.
We also think there will be a compromise in the form of cooperatives. However, these will likely be short-lived as it is duplication of what is currently available now. This system adds no value to consumers and will be extinct in 5 years. We saw a similar model used in California in the 1990s — with no success.
If we are to go out on a limb, we’d forecast that the biggest outcome from the debate over the public plan will be that within two years, Nancy Pelosi will no longer be Speaker of the House. Why? During the process, she has already alienated non-liberal Democrats, Republicans and we believe that ultimately she’ll alienate Obama in terms of her stubborn commitment to a plan that won’t work.
Who is The Villain?
Perhaps the question should be: Does there need to be a villain? In our experience as business owners, we’ve found that no problem is ever solved by calling people — or those in certain industries — names.
However, through dialogue (painful at times), the drug companies will be forced to negotiate with the government regarding Medicare. This is allow for huge savings in the long and short-run. The drug companies will adjust and thrive.
Insurance carriers (both profit and non-profit) will have to cover anyone who wants coverage with no pre-existing conditions. People will be rated by age. This solution will be implemented at the state level.
Many states have systems in place for this eventuality. Additionally, carriers will commit to slow down cost increases. For example, if the average annual increase is 8 percent, the carriers will keep the increases to 6 percent. This concession will be a victory for all.
The Uninsured
This will be the most expensive part of reform. The solution will be an expansion of the Medicare program to make sure each unisured has some level of coverage. The coverage offered will be modest and will cost much less than previously thought as people will understand that benefits cost a lot of money and there must be a moderate solution.
Who Pays?
In the end, there will be higher taxes. Not just for the rich, but for everyone who pays taxes. This is the only way to fund the expense of health care. No one will be happy about that solutions, but it will be tolerable.
The Future of Medicare
There will be benefit reduction as the program is not financially self sufficient as it is now. Additionally, the entry point will be increased to 68 or maybe even 70. This action will save lots of money. The result will be that people will work longer and have the same number of retirement years as life span will increase.
Will it be better?
For some yes, others..no. This debate will not be re-opened for another 20-25 years as there will be refrom passed. No one will want to re-open this debate as there will be political carnage..there will be definite winners and losers. Perhaps the most interesting result is that the people who thought they might be winners in the debate will be losers due to their stubbron, non-flexible viewpoints and the group thought to be losers initiall, will be deemed as winners. However, in the end, no one won or lost…there was basic survival.
Understanding the Nationwide Mindset
Health benefits will be less….people will learn to deal with it as was the case in the past. The expectations of what health benefits should be will be lowered…this will be a good thing as the sense of entitlement will diminish. People will start to see benefits to be used for catastrophic situations and routine wellness. The benefits in-between will be very basic.
Wellness Programs
The government will encourage and sometimes subsidize wellness programs. This will be a slow process, but will have a long-term affect of the general health ofthis nation, thus reducing overall health costs. We have made progress in the area of smoking, and I believe there will be targeted programs in other areas. People will see a linkage between lifestyle choices and health. This will be a long overdue recognition.
The Bottom Line
People will understand their respective roles and take action. Some will take more action than others. Like always.
Subscribe to our FREE Ezine and be eligible for Health News, discounted products/services and coupons related to your Health. We publish 24/7.
HealthNewsDigest.com
We also create, produce and distribute tv/cable public service campaigns: HealthyTelevisionProductions