Recently I did my annual calculation on what health care costs the average American. Latest figures from 2007 indicate total health care cost in America was $2.2 trillion and population was 360 million. Average comes out to slightly over $7,000 per person. Are you above or below that figure?
The basic flaw in our system is most of us cannot accurately assess the true cost of our own care. For example I've had several orthopedic surgeries over the past 9 years. I sometimes--but not always see bills sent to my insurance company and then sometimes--but not always see what they actually pay. When I do see figures providers bill one amount and the insurance company pay a much lower amount. One time I got a bill from a doctor for the difference. When I questioned my obligation I was told by the insurance company to pay nothing--the amount paid was the only obligation I/they had and the bill quickly disappeared. Even the 2 prescriptions I have filled are a mystery. One costs me $4.00 for a 60 day supply; another costs $60.00 for a 3 month supply. I have no idea how much either one of these would cost if I had to pay for them without insurance.
I believe one step we should take to cure that problem is to encourage every individual to establish a health savings account. The funds put into the HSA would be managed just like a 401k. How much should each individual be allowed to store there? As much as they want. Sure, wealthy folks could shelter lots while the average or poor could put aside much. However, a young person has years to invest and over time funds would grow. If funds are used for medical purposes they remain tax free. Upon death they could be transferred tax free into heir's HSA or if not then whoever uses them for something else pays tax. If funds are withdrawn and used for non-health care stuff, they're taxed. Is it a short term solution--of course not. But over time it provides incentives for individuals to get a handle on their own health care costs. Insurance policies would then be written with higher deductibles to do what insurance is really suppose to do--transfer risk that individuals can't predict or assume for a price.
Just please, except for a tax incentive, keep the government out of it!
