It has been long enough now that there may be some value in revisiting Obama Care. The one thing that has most people up in arms is the provision where everyone has to purchase health insurance. That concerns me too, but there is another provision that is just as bad. That is no provision for deductability. We all buy auto insurance with some kind of deduction. If we didn't, most of us could not afford the insurance. It is the same for health insurance. Here is my idea on how we could make the Obama Care concept less expensive for everyone and eliminate the provision where we are all forced to buy health insurance.
The idea behing Obama Care and the provision that everyone has to buy health insurance is to get more "tax" money into the system. I use the word "tax" because that is exactly what it is. When ever you are forced to give your hard earned money to the government, it is a "tax". Here is how my idea works. We calculate a deductable amount similar to auto insurance that would generate the "same" amount of money as the "tax". Rather than send this money into the government, the person who got medical services would first have to pay the deductable. The advantage of the individual paying the deductable is that they would think twice before they went to the Emergency Room. Further, there would be no "middle man" between the person's money and the health provider as we have now with the government. The government wastes at least 50% of the money that we give them in beurocratic paper work.
Let's look as an example. If we have 100 people under the Obama Care plan, let's assume they all have to buy health insurance for $1.00 each. In the Obama Care plan, the regular tax payers would put up another $9.00 to fund the plan our of general revenue. Now this is a guess on my part of the percentage of people who get some kind of medical service each year---33%. Now let's go back to the 100 typical people. To fund the Obama Care system, they put up $1.00 each for a total of $100.00. Only 50% of our people pay federal income tax, so only 50 people would put up the additional $9.00 each for a total of $450.00. This means we have a total of $550.00 in the pot for Obama Care.
The question is how much would the deductable have to be to collect the same amount of money from the 100 typical people? We need $550.00 total. Divide the $100.00 by 33 people and you $3.33. Do you follow that? If someone does not pay in cash for the deductable, we should send out people to collect just like we would for income tax.
Do you remember the comment by Obama where he said, "...a person should not have to lose their home to pay for their doctor bills when they got sick...". It sounds good until you think about what he said. Let's assume the person had some equity in their home. Should that person be treated any differently from a person who had an equivalent amount of money in the bank, but who rented their home? Why would the form of you net worth or earning power be treated any differently? If the guy has the net worth to pay the bill, why shouldn't they.
