The solution to ObamaCare.

After many arguments, the liberals don’t seem to understand that NO Obamacare is a valid alternative to Obamacare.  That even though we’ve suffered many evils so far with ObamaCare, there are more yet to suffer and that repealing it will go miles to making life better in the United States.

ObamaCare itself is either the greatest confluence of incompetence ever known in history, or it is an intentional botch up.  You can see it now every time a democrat gets in front of a microphone or camera.  “This [massive government intrusion into free enterprise] is a failure of Capitalism.  A single payer system will solve everything!”

And yet No Obamacare is not a solution to Obamacare?  Fine.  I’ll propose a real solution.  And I’ll fix the entirety of the Health Care system at the same time.

Almost all the problems of our current health care system are due to Health Insurance.  So the solution to the ills of Health Insurance is more Health Insurance?  Laughable.

Step 1.  In effect immediately, all Health Insurance is now illegal.  No person from a homeless man on the street to Bill Gates in his mansion will be allowed to purchase Health Insurance.  All the Cadillac plans that Congress, the Judicial Branch and the Executive Branch are hereby void.  Medicare is void.  Medicaid is void.  No health insurance anywhere.

Bad things happen when you disconnect the consumer / costumer from paying for the product / service.  Bad things happen when the customer no longer shops for the best price for the product.  When both are combined the prices skyrocket.  If someone is buying your product, and they don’t care what it costs, and they are not checking out your competitors, are you going to have low prices?

Step 2.  We change the entire judicial system to a “Loser Pays” system.  As it stands many lawyers bring frivolous lawsuits.  They would ask for a $50,000 settlement.  And if it will cost the company / doctor $75,000 to successfully defend it, with no recourse to recoup court costs, which course do you think they will take?  Naturally they’ll pay off the $50,000.

Several things will happen if you switch to a “Loser Pays” system.  First companies will have a financial incentive to defend themselves.  If someone brings a frivolous lawsuit and gets spanked in court, then they would be required to pay the defendant’s court and lawyer costs.  Second, only real cases with real malpractice will be brought.  Third, this would undercut the gigantic legal industry.  If tomorrow there were only a quarter the amount of lawsuits lawyers won’t be as important.

Step 3.  You limit awards from all lawsuits to Actual Damages only.  No more will someone be awarded hundreds of millions in Emotional Distress.  No longer will a company have to pay bundles and bundles in Punitive Damages.  All awards will be limited to actual costs of what it takes to fix the problem.

Step 4.  Hospitals are now no longer required to take anyone and everyone that comes in.  One of the largest drivers of Health Care Cost is paying for people who can’t pay.  This is a snowballing problem, too.  By transferring costs of those who can’t pay they are inherently taking people who could pay yesterday, but can’t pay tomorrow.  Suddenly a new person is unable to pay and the costs get pushed up more.  And more.  And more.  And eventually the system will shatter when no one can afford health care.

It may seem cruel to turn away those that can’t pay at first, but the alternative is an untenable system that will eventually explode.  By allowing Hospitals to turn away people that can’t pay they are taking off a HUGE chunk of hospital costs, and in turn, making Health Care more affordable in the process.

Step 5.  Health Savings Accounts will be encouraged through several ways.  If you currently have insurance, add up all the money you’ve spent on Insurance over your lifetime.  Now deduct how much the insurance has paid out in health care costs. Very, very, very few people actually receive more in benefits than what they paid in.

Like before, all money put into it would be tax free.  All money in it used for health care would be tax free.  And as an added bonus, once the savings account is maxed out, the person can take their monthly HSA allotment and receive it into their paycheck at a half-taxed rate.  So if you pay in $300 per month and max it out at $10,000, you can collect an extra $300 on your next paycheck, but only pay taxes on the extra $150.  Furthermore any money directly deposited into the HSA will be eligible for a 50% tax refund.

All HSA accounts would be fully insured by the Federal Government.  Also, the banks would be allowed to loan out at a rate of 50% (instead of the usual 90%) which will boost the economy.

This will do several things.  It will reintroduce capitalism back in the system.  People will be paying for health care with their own money and will be forced to pick the best value for their money.  Next it will force health care providers to compete for the customers.  Third, it will boost the economy with money being held in the bank ready to be used AND being loaned out at the same time.  Fourth it will incentivize having a maxed out HSA.

Step 5. After a period of several years, maybe 5-15 years after all of this has been enacted, Health Insurance will be legal again.  But it will not be a first-dollar service plan.  The only Health Insurance allowed would be high-deductible, catastrophic coverage.  And the lowest deductible would be equal to the maximum HSA amount.

Each step previous would lower the Health Care cost quite a significant bit.  #1 would prevent Insurance Inflation, driving down costs.  #2 would help America with many things, but with this problem would drive down Malpractice Insurance, another significant cost.  #3 would drive down malpractice insurance more.  #4 would significantly drive down costs because you would no longer be paying for others when you get healthcare, you would only be paying for yourself.

In addition, #’s 2, 3, and 4 would cut the gigantic “Administration” departments that Hospital Corporations have to deal with lawsuits, malpractice insurance and billing departments.

When the costs have come down, and stay down, then and only then would Catastrophic Insurance become legal.  While $10,000 deductible on Catastrophic Insurance seems low now, when the costs for Health Care drop 70-90% in total, $10,000 would cover a lot.

 

 

Sorry I haven’t posted in a while.  I have several posts that I’ve been editing and re-writing for a while, but I just don’t like them yet.

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3 Responses to The solution to ObamaCare.

  1. lrosner1 says:

    Your solution is pretty much in line with the one we are working on. Please join us in working out the wording for a set of Constitutional Amendment repeals and repair to restore a government OF the People not Above the people..
    http://connect.freedomworks.org/node/392457 (you will need to create an account. There is no charge)

  2. DianaUnderwood says:

    I am a nurse practitioner and I hate ObamaCare. Having said that, I think your article is one of the most ignorant I have read. I managed a clinic for the uninsured – workers were volunteer physicians and NPs and DOs (mostly Catholic, but not all) Let me tell you the patients you forgot…the diabetic carpenter who couldn’t afford his insulin and care and would get so sick he couldn’t work, and who would get our free care until he maxed his income out at $45k, and then was ‘kicked off’ the free care. I changed the rules and let him come, as long as he cared for himself with good diet and using it, we provided the free insulin AND HE COULD WORK THEN!! (and pay taxes and have good self esteem) Just because you don’t personally know the many many many people who use much more than they could save and more than they pay in premiums doesn’t mean they aren’t out there!!!! They are out there and hoping for a GOOD alternative to Obama Care! When they read absolute crap such as this article that says, save up your money tax free … cause gee that will help the 50% of Americans who don’t pay any taxes! Deny the poor that hospital visit for a cut in the foot and later we can amputate their foot gosh you are brilliant! How many years of medical education do you have????!!! IS this the BEST idea you could come up with???? Write to me and I can help you think of many, many, many better ‘solutions’ than what you came up with.

    • Hi Diana! Thanks for the reply.

      The system before Obamacare came along was a rocking boat where each swing to the side was worse and more violent than the next. Eventually it would capsize. My “Solution” existed before Obamacare did, as many of the people on other forums could attest to.

      It is a rolling snowball in forcing hospitals to take people that can’t pay. If everything else was equal, stable and not changing, this factor alone causes costs to rise every single day. The very act of making people who can pay for people who can’t makes more people who can’t pay every single day.

      My system would drive down costs for everyone, rich and poor, to the point where someone with no insurance or HSA could walk in and get their foot fixed for much, much cheaper than it is now.

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