It's the Economy! (Stupid)

"Patric Hale has done a wonderful job researching and presenting the key issues facing the United States in the 21st century. His new book is exciting to read and should be in the library of every concerned citizen and corporate manager. This book is a general guide and reference that can be used and accessed for many years to come."

Robert Johnson
Director (Ret.)
Hewlett-Packard

(excerpt from the book...)

INTRODUCTION

The sickest thing in America these days is its health care "system". This isn't just my opinion but everyone's opinion. The price for health insurance doesn't seem to ever decline, let alone increase at anything as low as the rate of inflation. We, the people who pay health insurance - either as individuals or corporately - are told it's because costs keep increasing. It's a vicious circle that seems to have stymied even the most sensible and experienced minds. I, for one, am literally sick and tired of being ripped off in this colossal bunko game. So, in this chapter will be a number of possible solutions, all of which are improvements on the current situation.

Permit me give you some of my personal background: I grew up in Connecticut but lived in Europe for 27 years (France, Germany, and the UK) before returning to the USA 10 years ago. Shortly after arriving back in America I was ripped off by the first insurance company when my wife had to have an emergency operation for which they refused to pay, so it ended up costing us $14,000 for just one overnight stay in the hospital. At least that was the hospital's first bill.... When I explained my circumstances of not being insured and "could we do something?" I was told that if I paid cash it would "only" cost $9,000! Incidentally, in this process the original bill just for ONE HOUR of the anesthetist was $1,200! I'm sure he was very good, but for ONE HOUR's work?! In the end, when I told them I had no insurance, they, too, settled the bill for only $400! It was, in my opinion, still an obscene amount of money for one hour's work, but at least infinitely more reasonable than $1,200! Why the lowered cost? Because no insurance company was involved! So if the hospital considers they were actually saving 28% if insurance companies were not involved, that should tell us all something about this so-called "system" that supposedly "insures" us, but doesn't "assure" anyone about our health care.

Since then I've been insured by only one company. After the first year my insurance rate increased 25%. The second year it increased 24%, simply because I turned 50 - the worst birthday present you can imagine, especially since I was still in the peak of health. The third year it increased another 20%. I actually called and asked what I thought was a sensible question: "Considering the inflation rate is less than 2%, on what basis can you justify such an increase?" The answer made my blood boil: "Well, we've separated Fairfield and New Haven counties [Connecticut] from the rest of the state since the costs are higher there, so we've had to increase your rates accordingly." "But that negates the very principle of insurance which is to spread the risk as widely as possible to lower the cost for everyone," was my--I thought--intelligent retort. "Nothing we can do about it, we're sorry." I wrote to the governor complaining that in such a small state like Connecticut such a thing shouldn't be allowed. I received a very polite, professional response from the state insurance department explaining that it was fully within the legal rights of the insurance company to do so. That brings us up to today when I've just received my renewal contract which came with another increase of 10%! Oh yes...wouldn't you know, each year as prices went up, benefits have gone down and the only way I could keep costs as low as I did was to agree to a $1,500 annual deductible! In the interim, because I've had some health problems, I've been told that even if I could find a cheaper insurance, chances are I wouldn't be accepted. So now I seem to be caught in a trap and I can't get out.

Now I am not a socialist of any kind, let me make that clear! Since part of my university studies took place in Berlin during the height of the Cold War (including living virtually next to the infamous Wall), I absolutely abhor anything having to do with centrally planned anything. Nonetheless, I do believe the purpose of politics is to provide a better government for a better society. And in that definition, I expect government to intervene to resolve problems that are critical to a better society where the "market" has fallen down or fallen apart. And that's what I believe is the case concerning health care in America and why a drastic and dramatic rethink about improving it is imperative.

It's clear that the health care industry is simply out of control. Health care workers blame trial lawyers for malpractice suits. And malpractice suits are blamed by health insurers for increasing premiums. And increasing premiums are blamed on health care workers for increasing costs. In the end, it seems a vicious circle where those inside the circle all benefit at the expense of the rest of us who live outside of the circle. America is the land of innovation in business, to say nothing of being the richest country on earth. There simply must be better ways to organize providing health care and peace-of-mind to the American people. A few suggestions follow an analysis of this issue.

(...more in the book)