In my last newsletter, I asked my readers to send me ideas of what they think might help our nation’s healthcare problem. I will post those responses in the next section, but first, I thought I would throw out a couple of ideas that I have. I am by no means claiming to be an expert on all things to do with healthcare, but I have been closely involved in the health insurance industry for 31 years.
First of all, as many know, I am a Vietnam Era Veteran. While I was never in Vietnam, I did serve (in basic training) during the last couple of weeks of the war (conflict). I was told when I enlisted that if I received an honorable discharge (which I did), that I would be eligible for certain benefits, among them the right to access healthcare through the Veteran’s Hospital systems.
Back in the early 80s, I did need to see a doctor, so I made an appointment with the local VA Hospital in Columbia, Missouri. My appointment was for 8:00 in the morning, so I got there at about 7:45. I sat in a large waiting room until noon, and then was able to see a doctor, who basically informed me that there was really nothing that they could do for my minor condition.
At that time, I didn’t have health insurance, but I decided that if I was going to be staying in the health insurance business I should get adequate coverage and carry it on myself. I bought an individual policy and have always carried coverage since then.
I am now married and my daughter will be leaving for college in about a month. I have a group policy (through COBRA) on my family. The COBRA will expire at the end of August, and I am looking at over $2K in monthly premiums to get health insurance at that time.
I decided that I would look back into the VA to see if maybe I could get my care through them, and then get individual policies for my wife and daughter.
I called the VA hospital in Denver, and inquired about getting back into the VA system. I was informed that I would need to fill out an application and return it and my eligibility would be determined based on my last year’s income (I thought my eligibility was based on the years I spent in service to my country). I received the application and am in the process of filling it out, although I am skeptical that I will be approved based on my income. I also asked the lady (who really seemed like she would rather be somewhere else) what the procedure would then be if I wanted to see a physician and get some prescriptions filled. She informed me that I could not make an appointment until the paperwork was returned and approved and that it usually takes about two weeks. However, there would then be a four month wait before I could get an appointment. Waiting four months really doesn’t do me a lot of good.
I make a decent living, although I am not wealthy. But I will not be able to afford $2K plus in health insurance premiums. And I guess I won’t be counting on the VA.
Now that you know where I am coming from, here are my thoughts on what we might be able to do to ease the Healthcare Crisis.
First, as a veteran, I feel that I should be entitled to receive the healthcare that was promised me. Although, I never fought in a war, I served my country proudly and received an honorable discharge.
I don’t know if this is correct or not (I have been unable to find any substantiating resources), but I was once told that if the government were to close the VA Hospitals and use the savings to allow all of the veterans to receive free healthcare, it would save a great deal of money. Again, I can’t verify if that is correct, but it certainly is worth exploring. As for the facilities, the government could sell them to private hospital enterprises, and there would really be no loss of jobs, as the staff would be absorbed into the private sector.
I recently read an excellent article (which I will post in this issue) by Ezra Klein of the Washington Post, which suggested that if everyone under the age of 65 were to be allowed to buy into Medicare that the premiums would help offset the financial crisis that Medicare currently finds itself in. It would probably also create such a large pool that the premiums would be much less than $2K per month for a family like mine, thus boosting individual resources.
I would like to take that suggestion one more step. If we can’t offer veterans the free health care that they were promised, why not allow all honorably discharged veterans free admission into the Medicare program. And veterans with service related disabilities could be enrolled into a program like Tri-Care For Life.
If there were a program I described in place, and non-veterans were allowed to buy into the Medicare program, each could have the option of purchasing a Medicare Supplement Insurance Policy, just as current beneficiaries are allowed.
Again, I don’t know how feasible all of this would be, but I would really like someone to look into it.
In the last couple of days, the news media has indicated that President Obama is leaning in the opposite direction. In order to appease the opposition, it is rumored that the President is considering raising the age of eligibility for Medicare to 67. That would save the government a lot of money, but costs seniors dearly. I firmly believe that is the wrong solution.
As I said, I don’t have the answers. All I have are ideas. However, in our current political climate, I seriously doubt that my ideas will get much consideration, as I am not a lobbyist for the drug companies, insurance companies or any other entity for that matter. And it really seems like the only people who can get our Congressional Representatives attention are the ones who can put money in their pockets.
Tuesday, July 12, 2011
Monday, June 20, 2011
Health Care Crisis in America!!!
I had intended to spend some time in this issue writing about Health Care Reform and the Medicare Crisis. I do have lots of thoughts on these subjects, and I believe that they are really one issue that needs to be addressed soon, and in a cooperative forum from Congress, the health care industry, the insurance industry and a public consortium.
However, I am not sure it is possible for Congress to do anything in a bi-partisan manner. Any time an issue comes before Congress, it seems that the first reaction from the members is, “What do my constituents think of it?” and “Which side of the aisle is proposing this?”
In “Star Trek, The Wrath of Khan”, as he is dying, Spock says, “Don’t grieve, Admiral. It is logical. The needs of many outweigh the needs of a few.”
Maybe it is time for our Congress to start thinking of the needs of many.
The health care industry is not so concerned these times with the Hippocratic Oath as the bottom line. For decades physicians, hospitals, pharmaceutical companies, and medical suppliers have been given a blank check by Medicare and the insurance industry. Now that the government and the insurance industry are trying to reign in these escalating costs, the health care industry is claiming it can’t survive without the huge profit margin.
The insurance industry might be the biggest impediment to a sensible solution. For the past 31 years, I have made my living as an insurance professional, but I sometimes am amazed at the audacity of my own industry to resist any sensible efforts at reform that do not allow them to play a huge roll, and maintain the outrageous profit margins that they now enjoy.
One barometer of an insurance company’s financial stability is its “Surplus”. That is the percentage of its total assets above the company’s reserve (claims paying funds). If the reserve fund shrinks to an unstable level, the insurance company must dip into the “surplus” to stabilize it. Basically all companies have something similar to a surplus fund (if they are profitable), and some analysts feel that it is the truest measure of a company’s net worth. For the insurance industry a good surplus to asset ratio is about 10 to 15 percent. I know of a couple of companies that have in excess of a 50 percent ratio. And they are not even the largest or best known in the industry. It is understood that we do not want any financial institution to be operating in a less than profitable situation, but 50 percent is outrageous.
Finally, that leaves the public consortium. “If it is to be, it is up to me.” Perhaps it is time to rephrase Thomas Smith’s title. How about, “If it is to be, it is up to us.” I know, it doesn’t rhyme, but it does make sense. Unless we can get together as a public and work out a solution, then our whole health care distribution system is in eminent danger.
I have some ideas on what could be done, and I’m sure that many of you also have some thoughts. For my next issue, I intend to write my suggestions. I would also like to hear from you. Let me know what you think needs to be done, and I will publish the best ideas from my readers.
I had intended to add each of the Colorado members of Congress and the Colorado State legislature to my email list. However, the only way to send them messages is by going through their web sites, so I am working on another way to get these suggestions to them.
If you are not in Colorado, I would still love to hear from you, as this is a “National Crisis.” If you send me an email and would like me to add your Congressional representatives and Senators (state and Federal), try to find their email addresses and I will add them to the list.
I would love to hear from you. Together, maybe we can have an impact. One certain thing is that by doing nothing, we will be stuck with a program that is not in the best interest of all of us.
"Let the watchwords of all our people be the old familiar watchwords of honesty, decency, fair-dealing, and commonsense."... "We must treat each man on his worth and merits as a man. We must see that each is given a square deal, because he is entitled to no more and should receive no less." "The welfare of each of us is dependent fundamentally upon the welfare of all of us." (Teddy Roosevelt)
However, I am not sure it is possible for Congress to do anything in a bi-partisan manner. Any time an issue comes before Congress, it seems that the first reaction from the members is, “What do my constituents think of it?” and “Which side of the aisle is proposing this?”
In “Star Trek, The Wrath of Khan”, as he is dying, Spock says, “Don’t grieve, Admiral. It is logical. The needs of many outweigh the needs of a few.”
Maybe it is time for our Congress to start thinking of the needs of many.
The health care industry is not so concerned these times with the Hippocratic Oath as the bottom line. For decades physicians, hospitals, pharmaceutical companies, and medical suppliers have been given a blank check by Medicare and the insurance industry. Now that the government and the insurance industry are trying to reign in these escalating costs, the health care industry is claiming it can’t survive without the huge profit margin.
The insurance industry might be the biggest impediment to a sensible solution. For the past 31 years, I have made my living as an insurance professional, but I sometimes am amazed at the audacity of my own industry to resist any sensible efforts at reform that do not allow them to play a huge roll, and maintain the outrageous profit margins that they now enjoy.
One barometer of an insurance company’s financial stability is its “Surplus”. That is the percentage of its total assets above the company’s reserve (claims paying funds). If the reserve fund shrinks to an unstable level, the insurance company must dip into the “surplus” to stabilize it. Basically all companies have something similar to a surplus fund (if they are profitable), and some analysts feel that it is the truest measure of a company’s net worth. For the insurance industry a good surplus to asset ratio is about 10 to 15 percent. I know of a couple of companies that have in excess of a 50 percent ratio. And they are not even the largest or best known in the industry. It is understood that we do not want any financial institution to be operating in a less than profitable situation, but 50 percent is outrageous.
Finally, that leaves the public consortium. “If it is to be, it is up to me.” Perhaps it is time to rephrase Thomas Smith’s title. How about, “If it is to be, it is up to us.” I know, it doesn’t rhyme, but it does make sense. Unless we can get together as a public and work out a solution, then our whole health care distribution system is in eminent danger.
I have some ideas on what could be done, and I’m sure that many of you also have some thoughts. For my next issue, I intend to write my suggestions. I would also like to hear from you. Let me know what you think needs to be done, and I will publish the best ideas from my readers.
I had intended to add each of the Colorado members of Congress and the Colorado State legislature to my email list. However, the only way to send them messages is by going through their web sites, so I am working on another way to get these suggestions to them.
If you are not in Colorado, I would still love to hear from you, as this is a “National Crisis.” If you send me an email and would like me to add your Congressional representatives and Senators (state and Federal), try to find their email addresses and I will add them to the list.
I would love to hear from you. Together, maybe we can have an impact. One certain thing is that by doing nothing, we will be stuck with a program that is not in the best interest of all of us.
"Let the watchwords of all our people be the old familiar watchwords of honesty, decency, fair-dealing, and commonsense."... "We must treat each man on his worth and merits as a man. We must see that each is given a square deal, because he is entitled to no more and should receive no less." "The welfare of each of us is dependent fundamentally upon the welfare of all of us." (Teddy Roosevelt)
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