How to Insure 28 Million Uninsureds for 1/3 the Cost of the Senate Bill
If we are absolutely compelled as a nation to throw money at “fixing” health care, consider the following.
- Did you know that, according to the Census Bureau’s CPS data, 60% of the uninsured are under the age of 34? That’s roughly 28 million individuals.
Currently, folks in their 20’s and 30’s can purchase private individual health insurance plans at a cost of around $2250 per year. There is some question whether the high rates of uninsured in this age group are more a function of individuals feeling invincible and not choosing to purchase insurance versus actually being unable to afford such coverage.
If the government were to provide a $2000 annual subsidy for uninsured individuals under the age of 34, it would remove these nearly 28 million individuals from the ranks of the uninsured. This eliminates over twelve million more uninsureds than does the currently proposed Senate plan. And the best part? It does this for a third of the cost! (The Senate bill, according to the Congressional Budget Office, eliminates only 16 million of the 46 million uninsureds and does so at an estimated cost of over $1.7 trillion.)
Further, by injecting these new insureds into the system, it would offer a stabilizing effect to health insurance premiums (in both private and public plans) across the board. This stabilizing effect would occur because by adding so many new insureds, it would decrease “cost shifting” in the current system. Cost shifting occurs when we all pay higher rates in order to “cover” uninsured individuals who can’t pay. Adjust the premium subsidy for income, restrict pre-existing condition exclusions by insurers, and include a mandate that individuals acquire a base level of coverage (similar to the proposed “shared responsibility” idea in the Senate bill) and the plan gets even less expensive and easier to implement.
And, all this can be done:
- Without turning our health care system inside out.
- Without eliminating jobs (actually, it would likely add jobs).
- Without growing the government (so, much).
- Without reducing payments to physicians.
- Without establishing a government run health care system.
- While preserving individual choice and freedom in health care.
Just a thought!
Tagged with: Health Care Reform
Filed under: Health Care Reform
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Full of common sense and truth! Great post!
~”eliminate” underwriting and [force] flood the system with health individuals to reduce costs is what I’ve been saying. Very well thought out post.
A significant portion of the individuals listed as uninsured are “unassimilated immigrants.” Many of which, unfortunately, are illegal immigrants. If you limited this subsidy to legal citizens, it becomes even more potent. Listening to people talk today in the media, it seems like folks are more interested in insurance reform than over all health care reform. A few simple changes could go a long way to rectify many of the common complaints we are hearing about health care.
I don’t think the insurers would mind some “change” as long as they all have to play by the same rules. It’s hard to be the leader in underwriting concessions if none of your competitiors come along for the ride.