Protect Private Healthcare- Protect those who suffer the most

Health
1

I would suggest that we make a change to protect private healthcare before a socialistic approach that would increase costs and kill innovation gains steam. Let’s do this while we have the chance.

Proposal in bullet point form:

  1. The government agrees to pay the healthcare cost for any US citizen whose illness is deemed “catastrophic and ongoing” and whose cost exceeds x amount. For example, x might equal $1m. In that case, the insurance company would be reimbursed by the US government when that bill exceeds $1m.

  2. This would effectively unburden US citizens from the concern that one major illness would bankrupt them.

  3. When offering policies, insurers would no longer have to factor in outliers (catastrophic cases) when offering healthcare policies. As a result, polices would be available for some fraction of the current rates.

  4. Without the possibility of having to pay for a catastrophic case, additional insurers would enter the market, creating more competition for subscribers, and further lowering policy costs.

  5. Insurance would remain private with taxpayers paying only for people with the most serious of illnesses.

  6. The government would be a payor only and only in a small fraction of cases, although the total bill would be large.

  7. All Americans would have completely equal acess to this benefit, and it is a benefit that no one will wish to receive.

  8. US Citizens would be able to purchase policies to cover illnesses with a cost below whatever we deem to be “X” and those policies should be relatively cheap.

  9. Whether self-insured or providing 3rd party insurance, businesses will save a tremendous amount and will pour some of those savings back into hiring, employee, benefits, and R&D. This will create addtional tax revenue to help offset some of the taxpayer funded insurance reimbursements.

  10. Subsidies for those that cannot afford even the new, lower cost polices being offered, will be lower than now. Larger subsidies are needed when policy costs are very high, as is the case now.

I cannot imagine that any American will view someone utilizing this benefit as abusing the system or as unworthy of this benefit. I believe this use of our tax dollars would benefit a large number of Americans if only by reducing the stress and worry related to someday facing a bankrupting illness, let alone actually using this benefit.