How to solve the health care crisis
A revolution in healthcare has taken without many people even noticing the changeover into 2009. This significant change took place without the help of government healthcare agencies, media outlets, or or professional politicians. The switch is from traditional comprehensive health plans to leave her health savings accounts.
What’s more important is that while presidential candidates were proposing complicated and far-reaching healthcare reform many doctors, insurance agents,HR departments and insurance companies had already discovered and started implementing what could well be the solution to America’s healthcare affordability woes. Those individuals and organizations have been quietly taking advantage of a remarkably simple and affordable health insurance combination that came into existence in 2003 – a high deductible health plan (HDHP) combined with a health savings account (HSA).
Simple economics is why this quiet revolution has begun, and it’s quickly spreading throughout the business community. If you are currently purchasing health insurance for yourself or others you’ll immediately see the value of this combination compared to comprehensive insurance.
With this combination of HDHP and HSA even the smallest of small businesses and the largest of corporations can afford to offer their employees health protection in a much smarter way than ever before, thereby providing insurance to even more Americans. Individuals without employer-provided or government-provided insurance, such as the self-employed, can also afford to have security against catastrophic injury and illness. And there is even room for the government to utilize this new system to distribute healthcare dollars however it wishes without the current hassles and bloated bureaucracies involved in regulating, pricing, and policing every aspect of healthcare.
An HDHP provides a high deductible health insurance policythat begins paying for medical care after a highly adaptable has been met by the insured. a deductible may be $1100 or more, depending on the price you or your employerare willing to pay for coverage. HDHP is much like real insurance because it typically is only used for catastrophic illness or injuries and not for routine care. normal doctor visits and non-catastrophic care this page from a bank account that is specifically set up for healthcare. This account, called in HSA is setup by the insured or by an employer. The money is deposited tax-freeby the individual, employer, The government or a combination of the three. With all three cases, the individual owns the account and can spend the money on almost any healthcare expenses they wish. no matter who contributed to the account, the money belongs to the individual and never expires.
If a complete government takeover of the healthcare industry can be avoided then widespread use of HDHPs and HSAs will eventually bring the era of managed care and comprehensive medical insurance to an end, taking with it the tremendous havoc it has brought to our nation with its massive insurance bureaucracy, complicated insurance plans, skyrocketing prices, and restrictions on both patients and doctors. Market forces would return to most of healthcare, sparking a rise in competition for prices, quality, and innovation as doctors, hospitals, and pharmacies all compete for healthcare dollars that patients themselves control free from the artificial price inflations and extra payroll costs caused by comprehensive insurance. The complexity of modern health insurance would be replaced with a nearly unimaginable return to simplicity.
For example, a company currently providing health insurance coverage to one of its employees for $600 per month could stop providing the current comprehensive health coverage and replace it with an HDHP for about $200 per month. The $400 savings could be put directly into the employees HSA. Now that employee accumulates that $400 every month to use on more frequent health care expenses and to be saved for future deductibles while having the protection of an HDHP, in case of a catastrophic illness or injury. A small business that could never afford to offer $600 per month healthcare coverage can now offer an HDHP by itself and might even consider contributing to the employees HSA. this would expand the number of people who are insured because this business, which before couldn’t afford to offer health insurance can now do so. the health savings account money will always belong to the employee for their healthcare expenses. They would always decide which doctors, what procedures, and what medicines they would choose to spend it on. In this simple scenario can easily be used by her government as well.
A great example is: a company is providing comprehensive health coverage for one of its employees at $600 per month would be able to stop providing this coverage, and offer an HDHP for around $200 per month. The $400 savings could be put into the employees HSA. The $400 is now available for more regular health-care costs and can be saved up for future deductibles and provides the protection of a HDHP, should something catastrophic occur. a small business who couldn’t afford the $600 could now offer its employees the HDHP and may even be able to contribute to the HS a, thereby offering medical benefits where it cannot today. This expands the number of people who can now afford health care coverage. Employees would always decide what doctors to see, what procedures to have, and what medicines they spend the money on. This same scenario would make a great option for the government as well.
For more information about HSAs goto http://www.ustreas.gov/offices/public-affairs/hsa/faq.shtml
Related posts:
- Health Care Insurance — How To Get It Cheap This article is about other things you can do to get cheaper rates. Here they are with a precaution you mustn't fail to take......
- The Importance Of Health Care Insurance One of the most basic necessities for survival is to take care of your body before it is too late. Health care insurance provides with that ability and the right kind of healthcare will allow you to enjoy a happy life while going about your daily routines....
- Health Care Insurance — Ways To Get It Cheap I'll discuss more ways anyone can get massive discounts without downgrading their coverage. Here they are with a precaution you mustn't fail to note......
- Understanding the Different Types of Medical Insurance In order to make sure that you are covered in the event of a medical emergency it is important to be aware of the different types of medical insurance. If you are uninsured, or do not have the necessary medical coverage, any major medical problem that you encounter will have a significant impact on your personal finances....
- Health Care Insurance Has Many Forms In today's world, health care insurance plays a vital role especially considering the number of ailments affecting us. Hence, you need to know the different kinds of health care insurance out there than can help save money and protect your family. There is a chance that you can hit two birds with one stone if you do some homework and work out what is best for you....
Written by Dr. Eric Stamper, O.D. on December 9th, 2009 with
no comments.
Read more articles on Insurance.
- [+] Digg: Feature this article
- [+] Del.icio.us: Bookmark this article
- [+] Furl: Bookmark this article