Profile
Photos
Comments
no health insurance cost the government 100 billion a year, according
to the National Coalition for Health Care (NCHC). The NCHC also
reports that those same people cost individual hospitals about 30
billion a year.
Even
those with coverage are finding their premiums rising and their
benefits falling as employers battle with rising health care premium
costs that are soaring three to four times faster than inflation.
No
one can deny that we have a health care crisis. President Obama wants
to solve that problem and save the government money at the same time by
offering an alternative group health plan to those who wish to enroll.
To
understand his plan, one first must understand how premiums are
calculated by insurance carriers. All insurance carriers base their
rates on tables, compiled by actuaries who have degrees in that
particular field. Â These tables take into account several factors; but
primary among these factors is the size of the group.
The
larger the group, the cheaper the premium. That is simple
mathematics. If, for instance, a person works for a company that
employs 35 people, his premium is going to be significantly higher for
the same benefits than someone who works for a huge national or
international corporation that employs 100,000. Â
Obviously,
the company that has 100,000 people is paying in a much larger amount
of money to the insurance company to cover the losses the insurance
firm incurs from illness in that group.
So,
that brings us to Obama's plan. His plan will be modeled after the
plan that Congress and other government employees has. It will cover
pre-existing conditions, it will cover any physician or any hospital
the patient wants to use, it will feature reasonable premiums, and low
deductibles.
Since
this plan will insure some millions of people, the size of the group
will be huge, which means that insurers will be salivating at the
chance to underwrite it for the government.
Ultimately,
the plan will be underwritten by a major insurance carrier just as any
group plan is--that could be Blue Cross/Blue Shield; Travelers;
Universal or one of several others. The plan, I am sure, will go to
the insurance company that gives the government the lowest bid.
The
premiums will be paid to that carrier with the government paying a
certain percentage just as employers do. Those who still cannot afford
the coverage can receive government assistance with their share of the
premium.
No one is required to enroll in the plan if he is satisfied with his current coverage. It will be strictly voluntary.Â
Every
American should get behind this. We never know when we can lose our
coverage due to illness or lay-off. It happened to me when I could no
longer work due to cancer. I had to go on COBRA, which ultimately was
costing me $1100 a month before I could finally get on disability
Medicare. That will destroy a person's retirement savings in a hurry.
As
an insurance agent, I can tell you that this is a stroke of genius on
Obama's part. He could not have devised any better plan for the
American people than this. It will keep everyone happy--the AMA, the
pharmacists, the hospitals, and the pharmaceutical association as none
of them will fall under government control in any way. At the same
time, it will offer Americans a chance to have quality health care at a
reasonable cost. And one does not have to worry about losing his
coverage-ever.
We need to fight for this and not let Congress change it one iota.
