Change of Heart
Well, I must admit that talking to others with different experiences and listening to the other side of the story is one good way to learn. This past weekend my thoughts were changed on the health care reform issues, and simply by listening to another opinion from someone who sees another side of the story.
Medicare as we know it is failing. Government is blamed for it, and people don't want their healthcare operated by big brother thinking the same results will happen. A new thought was presented to me concerning Medicare versus private insurance though, and it makes sense.
Medicare recipients are almost all elderly, and most are already in failing or poor health. In other words, they are what are known as high risk clients in the private sector. So yes, if every person you insured used more medical dollars than the premiums you are bound to operate in the red.
Private insurance companies have the luxury of selecting clients to insure, hoping to pick the ones that use fewer medical services. This will keep their overhead lower, and leave more profit. Of course that's what they want. The average overhead operating costs of private companies typically run 28% or more. The overhead operating costs of Medicare average 3% of total revenue.
A private insurer can also place people in high risk categories, forcing them to pay higher premiums. For some this is impossible. Consider this scenario; you have just been diagnosed with cancer. Treatments and medicine run well over $2,000 per month but the company healthcare plan covers that. Until you get so sick that you can no longer work. COBRA coverage is so expensive due to pre-existing conditions that it is unaffordable, especially when you are unemployed. So where do you go for coverage? Many run up huge hospital bills and eventually are forced to file bankruptcy or lose their home and savings. One such person sought help by moving to a foreign country for treatment where her medicine costs decreased from $120 per dose to 5¢. I'm sure the additional $119.95 difference in price per dose here in America goes towards advertising and research costs. Oh, and probably a few big bonus checks too.
So am I now in support of healthcare reform? Not completely, but it makes sense that if all Americans were in the same plan the cost of insurance would be shared between the healthy as well as the ill. With everyone under one umbrella, costs could be more fairly shared. This larger insurer would also have more leverage when purchasing services, setting rates and reimbursements. Maybe if congress can conjure up a good piece of legislation for once, healthcare reform could be an affordable possibility.
Until next time, hope all your "Thoughts" are Good-
Tim