Employers, employees and their families should cooperatively plan their finances to avoid heartbreaking disasters that can result from Life-Altering and Major Incidents. The monthly cost of a $2,000-deductible medical plan is sometimes 60% less than that of a comprehensive major medical plan, HMO or PPO. This reduced premium charge and higher deductible is well within the economic planning of most Americans or their employers.
Hospitals and healthcare providers do not refuse medical care when the deductible is too high, only when there is no insurance coverage. To a hospital, $2,000 would be acceptable co-pay for a $50,000 treatment.
For less than $500 per person, per year, most Americans can get adequate “Routine Care and Maintenance” services. Employer-sponsored plans are more than capable of picking up these costs. An individual may exceed $2,000 in annual medical bills just a couple of times in his or her entire life. Why pay premiums for this expense every 12 months?
With a family deductible of $5,000, only Life-Altering and Major Incidents would reach this level consistently. The family could reserve funds for this one-time expense every several years with a line of credit against their retirement savings.
Think of that! A family could allocate 60% of their current health insurance premiums toward retirement. This alone could add an additional $6,000 per year to each families’ IRA and 401K contributions — money that is now by-passing the tax system as employer-paid insurance premiums. The result: no additional tax burden on the national budget.
Part of this money could be earmarked to subsidize income-based clinics, or to provide doctors with interest-free loans to set up clinics in exchange for treating a certain percentage of indigent patients.
Where to Get More Details
I hope that the ideas and reforms outlined in this report are useful. If you would like more details on any of the points presented, or on our employee benefits program, I would honor the opportunity to share with you my vision for a healthcare system that is fair, affordable and reliable for all Americans. If you deem it appropriate, please contact me by completing the contact form below.