If I had all the money I funneled into healthcare insurance policies and never used it – I would have enough to pay for anything that may happen; in-patient or out-patient with some left over for retirement supplement.
Because those in government would not have access to it.
John C. Goodman wrote a book entitled Priceless: Curing the Healthcare Crisis. He is considered to be the father of health savings accounts known as HSA.
Here is the Goodman simple fix, supposedly the Republican fix of the Affordable Care Act …
1) A universal tax credit – which would not be required if there were no income tax.
2) Roth Health Savings Account – this idea was already tried, but the government demanded that if one wanted to open a healthcare savings account they must prove they are paying into an insurance plan; which definitely is out of the question with premiums $400 or more per month.
3) Medicaid as an option for everyone – which is simply a national healthcare system, maybe like Canada where a family of four (two adults and two children) costs less than $200 per month and it covers 100% of healthcare bills with no deductible. However, they must wait in line for important operations.
4) Change of health status insurance. In so many words, not paying for maternity clauses in insurance plans if you are a male or women paying for prostate cancer tests.
The ultimate thing, if everyone thinks that taking amounts out of each paycheck, like Medicare and Social Security; but instead of giving it to the US Treasury, it goes into a private HSA and that negates the need for insurance. Individuals then have control over their money and if they are healthy, they can accumulate a nice nest egg for the future and for emergencies. It is what Social Security should have been like because it was originally set up as a “trust fund”; but those we elected to operate our government spent too much in other areas, so “borrowed” from the trust fund. Then they realized they could not put it back, so they put the blame of Social Security benefit trust fund’s bankruptcy was the blame of the “Baby Boom” population; hoping that someone would not notice that when there are more people involved, more money is going into the fund. They also did not mention the fact of the Social Security system’s unique setup – the government becomes beneficiary to any unused individual funds. Thus, for example, if a person not married dies at 30 and has paid into SS since 18 – that money just remains in the “trust” fund.
So what happened to that money? We will probably never know, just like we will never know what the State Department did with $6 billion during Hillary Clinton’s tenure.
A goal should have been to get rid of the complex, intrusive and unfair income tax system and replace it with a flat consumption tax, which would mean that the IRS would be reduced to an audit agency with no power and people would bring the same money home they earn and not spend time and money filling out forms that few understand. Certainly there would be less of a chance to cheat on taxation.
And insurance companies: add up all the insurance premiums you pay monthly, quarterly, or annually and see how much of that (after payroll taxes) you get to do with what you need to or wish to do with your earned money. See how much of a return you get from insurance companies for those premiums. I paid a little over $400 per month for family health insurance and they refused to pay $100 of a doctor bill, which was the only claim for that year. In addition, those premiums paid do not provide 100% coverage – AND – there is a deducted amount. Tell me that insurance companies are not making money. Your premiums are used by insurance companies in various investments, that is where they make their profit – not just by collecting premiums. Maybe if they would not put their home offices in huge expensive buildings, they might be able to reduce those premiums.
Indeed, the issue has its myriad of problems. We need economic experts to deal with it, apparently a trait that elected officials lack; and for once, the consumer should be getting the breaks not the lobbyist insurance companies. Of course, a HSA would not be very productive with interest rates less than one penny per dollar. But that is another serious issue to address, isn’t it? That is the fault of the Federal Reserve, you know, the one that is never audited and no one knows who is in charge of it, and it is okay to print money when things get rough with nothing to back it up.