Unhealthy Health Care

This is a very good analytical article about the state of the cost of health care in America. I agree with everything she says other than how she characterizes health insurance companies - Blue Cross in particular. Basically this author makes the case for moving insurance plans from the current 'pre-paid' health care plans to more basic major medical coverages through Health Savings Accounts or Health Reimbursement Accounts. Again, I agree that employers need to look into these new programs for cost savings because it is a good solution to reduce the cost associated with health care. However, people have been unwilling to part with their expensive copay plans with low deductibles and high premiums.

The reason I disagree with the author saying that the health insurance companies don't want people in these plans is that most of the major companies offer these plans too. They would prefer to limit their liability and place the burden of cost controls to the consumer in these 'consumer driven health care' plans. I agree that it is a good solution to the problem of rising costs of health care, but we need to get away from the idea as a culture that we 'need' 15 dollar co payments for a visit to the doctor. Enjoy this very good article.

Current plans are the equivalent of a $1,000 oil change.

By Linda Halderman

If Americans shopped for health insurance like they do for auto insurance, Blue Cross might need to use a cute green Gecko for marketing.

Eighty-percent of people who buy employer-sponsored health insurance incur less than $1,200 in yearly health-care expenses. Another 10-percent accrue expenses totaling $1,200-$3,000. The final 10-percent require more than $3,000 to cover their yearly health-care needs.

But the average group (employer-sponsored) health-insurance policy costs $350-$800 every month — up to $9,600 yearly per employee. The reason for this high cost, low value equation is simple: Blue Cross, CIGNA, HealthNet, and every other major carrier aren’t selling you health insurance. Their expensive premiums fund pre-paid health care.

Continue reading the article here.