Why can't health insurance be like car insurance? (solution, dollars, compare)
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every one keeps dancing around why health insurance is so costly, as compared to auto insurance;
1: health insurance is regulated not only by the states, but by the federal government as well.
2: federal and state government have many costly mandates that require health insurance to pay for many things, even if you will NEVER use them.
3: state and federal governments have piled on the paperwork for doctors and hospitals, so much so that each have staffs of people just to handle the paperwork requirements.
4: health insurance companies are required to pay out at least 65% of the premiums they take in on health care. soon that requirement will be 85% if the obamacare law is upheld.
5: most people have their health insurance pay for everything health related rather than pay for somethings themselves.
6: doctors order extra tests to avoid being sued.
7: malpractice insurance rates are extremely high, as much as $200,000 per year for many doctors.
8: doctors get sued far too often because someone got a hangnail and the doctor didnt cure them quick enough.
I don't have time to refer to all of these but here are a few comments.
"federal and state government have many costly mandates that require health insurance to pay for many things, even if you will NEVER use them.
This is because people lobby their state legislators to have things like invitro fertilization or chiropractic care covered. Obviously someone is using these services or they wouldn't add to the cost of healthcare. Health insurers are more than happy to expand coverage since it give them more profit potential.
"health insurance companies are required to pay out at least 65% of the premiums they take in on health care. soon that requirement will be 85% if the obamacare law is upheld."
And how does this add to the cost of healthcare?
"most people have their health insurance pay for everything health related rather than pay for somethings themselves."
Are you saying if something is covered, you should use your health insurance to pay for it?
"doctors get sued far too often because someone got a hangnail and the doctor didnt cure them quick enough"
There are lots of medical mistakes made every day that result in the death of patients that don't result in law suits. Medical malpractice lawyers only take the ones they feel confident of winning and have the potential for a large settlement. Much of the poor care in hospitals is due to issues with coordination of care between physicians and inadequate nurse staffing.
If you want to compare health insurance to auto insurance, a big difference is auto insurance is actually insurance. It insures against catastrophic events. Auto insurance does not cover routine expected expenses.
Would you have your car insurer pay for oil changes and new tires?
Imagine what premiums would do and how costs would skyrocket for those who paid out of pocket?
My car insurer doesn't cover a new engine if these people I pool my risks with don't change their oil. The health insurance company I use is going to pay the costs if my chowderhead colleagues don't watch their cholesterol. Which is why the insurer pays for all sorts of preventative care - they're not stupid.
$90 for a regular doctors visit? My gyno appt every year is at least $225 at the doctors office in professional building attached to the hospital. It's $225 plus the costs of blood draws, routine tests. Then there is the $500 mammogram and another $225 for my annual physical. Oh yea, then there is the extra costs for those routine tests too. I have a good insurance plan with a huge deductible. I pay most routine costs out of pocket. When i reach my deductable and then the insurance company starts paying for me, the discount the insurance company gets when they pay the bill is huge. If they paycheck bill, the doctor takes off 60%. They pay 40%. When I pay the doctors bill, I pay 100% until i reach my deductible then I pay 20% of the 100%. That is just bologna if you ask me. I would love mandated coverage like auto insurance - then everybody would have to pay and my cost for insurance would go down.
My car insurer doesn't cover a new engine if these people I pool my risks with don't change their oil. The health insurance company I use is going to pay the costs if my chowderhead colleagues don't watch their cholesterol. Which is why the insurer pays for all sorts of preventative care - they're not stupid.
So, you're ok with a health care insurance policy being a license for the insurance company to intrude upon your personal life in a way you would never accept the government intruding? Doing what you suggested would require you to be under constant monitoring by the insurance company -- seeing and approving what you eat, drink and smoke.
Oh, you believe in health care through bankruptcy?
Must be your belief. You're the only one mentioning it.
But this little tidbit of reality has nothing to do with believing...
Sixty-two percent of all bankruptcies filed in 2007 were linked to medical expenses, according to a nationwide study released today by the American Journal of Medicine. That's nearly 20 percentage points higher than that pool of respondents reported were connected to medical costs in 2001.
Because car insurance and health insurance are completely different. For one, the states highly regulate auto insurance and anyone must have it to own a car. Call that the individual mandate.
Next, let’s say that you are self-employed, and lucky enough to have found a company to provide you with health insurance. Then, let’s say you develop cancer. You suddenly find out that your insurance company stinks. So you think you're going to switch to one of those companies that advertize on TV?
Of course not. You’re screwed. Now you have a pre-existing condition. There’s not an insurance company out there that wants to cover you. So you don’t switch. You scream, and curse, and cry, but you’re stuck. Only healthy people have the luxury of picking and choosing.
Let’s also not forget that most people don’t find out that they’re not getting “good service” until they’re sick. Healthy people don’t make much use of their insurance, so they don’t know how bad it is. They only find out after they’re ill, and then it’s too late. It’s only fun to fire the insurance company if you’re sure you can go to another company to get what you need. Almost no one can.
You are misinformed. You do NOT have to have insurance just because you OWN a car.
ONLY if you decide to drive that car on the streets, THEN you have to have insurance.
Your example can be applied to car insurance also. If you have numerous accidents they probably will drop you. You won't even get as far as not being renewed.
Not in the state of FL you can't. If you have a car, even if you don't drive it, you have to have it registered and it must be insured. Trust me, I found this out the hard way.
i found this, "Florida law requires that motor vehicle owners must register their vehicle with the Florida Department of Highway Safety and Motor Vehicles before taking it on the road." How to Register a Vehicle in Florida | DHSMV
well we wouldn't need to have health insurance for medicines and regular doctor visits if the doctor visits only 25 dollars or less, or if you needed allergy medicine for 10 bucks....
But when Doctor visits are 80 dollars or more, and allergy medicine is 200, I needed nasonex CVS soad it cost 125.00...give me a break, people cannot afford that. and this is why we have to have insurance.
My own Docotr siad it was a PITA, that is why Doctors charge so much a visit because of the insurance....
FYI- Most people in the private sector now have large deductible plans and health savings accounts where you accumulate $$$ pre-tax to pay costs.
The bottom line is that there has always been health insurance, it's just that the costs of providing care and expectations of the level of care have far outpaced inflation.
So, people see the high cost of healthcare today after 20 years of wage stagnation but 10%+ medical cost inflation and freak out.
You are misinformed. You do NOT have to have insurance just because you OWN a car.
ONLY if you decide to drive that car on the streets, THEN you have to have insurance.
Your example can be applied to car insurance also. If you have numerous accidents they probably will drop you. You won't even get as far as not being renewed.
So, I only need insurance if I actually want to use a car for driving on roads -- it's intended purpose? Thank you for the nit-pick.
Quote:
Originally Posted by swagger
I've seen a number of posts talking about having insurance for major problems, but paying for office visits and "the small stuff" out of pocket.
I'd just like to point out that when Obamacare fully kicks in, you won't be able to purchase this kind of insurance. It will be ILLEGAL. EVERY policy sold MUST include preventative care.
I just can't believe that there are still people who think this law has any redeeming value whatsoever. I don't what your political persuasion is - Obamacare is a BAD LAW.
Let me explain the redeeming value.
Let us assume that what you said is fact about the ACA. Preventative care saves the insurance company money. The big expenses for the insurance company are major illnesses, such as heart attacks and cancer. A heart bypass costs $100,000. Avoiding bypass surgery may only cost office visits and medication. That's a plus.
If annual checkups and colonoscopies catch theses illnesses early, it saves the insurance company money to provide this coverage and also avoids a zipper on your chest.
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Look up "non sequitur"
