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"Managers and employees of old carriers can remain at their desks doing the same jobs while voting themselves significant raises".
Stated poorly, I apologize. When a for-profit converts to not-for-profit, the employees remain. In fact, Directors can vote their own compensation packages, a nice perk.
Considering the state of the debate, a capitalist should use all the tools in his belt. Not-for-profit is one such tool, and not a bad option considering Big Government's present intention.
That should do it. Private, portable, mandatory minimum coverage available to all Americans with no new taxes or hidden fees. Who pays for the seemingly miraculous change? The middle-men and the gamblers. No one needs lose their job, simply the money they presently remove from healthcare insurance will be recaptured and plowed back into the system. Its currently 1/3 of the $1.1 trillion pie, enough to fully insure 30 million new citizens at $12,000 each. Expect the greed merchants to put up a cat-fight.
When you buy health insurance today, one agent and maybe two brokers take commission before a carrier sees the application. The carrier keeps only a part of the "risk" and reinsures the rest, again involving one to several brokers who each take more commission. Eventually, your claims are paid in full by several carriers in parts. Those carriers have only 65 cents of your original dollar to pay your claim. Agents and brokers do not pay for your claim even though they take part of your premium. This must stop. In addition, the carrier has stockholders who expect a dividend. Subtract another 5-8 cents from your premium dollar. This must stop, also.
Agents and brokers can sell dozens of other insurance products for commission to maintain their livelihoods. Stock brokers and equity investors can risk their capital in other industries. Managers and employees of old carriers can remain at their desks doing the same jobs while voting themselves significant raises.
It is a workable, win-win plan. No Pork or earmarks included. I want naming rights to the eventual bill. It will take political will to remove a proverbial pig from the feeding trough. But it must be done. Its the only right thing left to do.
Federal Law of Important Name:
"No domestic or foreign entity may conduct the business of 'Heathcare Insurance' with a citizen of the U.S.A. unless such entity is legally admitted under MHA2010 to do business in one of the fifty states". "Tax effect = negligible beyond implementation, Equalization and monitoring expenses".
Concurrently, the National Association of Insurance Commissioners (NAIC) meets to pass the Model Health care Act(MHA2010), to be adopted by deemer in each of the 50 states. It is akin to the Standard Fire Policy Law in that minimum fire coverage is required in all Fire Insurance policies sold in the U.S. of A. The Act(MHA2010) provides statutory minimum coverage and actuarially sound rate requirements for any entity wishing to transact the business of Healthcare Insurance, similar to Worker's Compensation before open rating. U.S.A. citizenship is the only eligibility requirement, but coverage is administered within the state of domicile and regulated by the respective DOI. Rural communities and low income citizens receive cost sharing through Federal Equalization. Subrogation must be an important element of cost control.
At the same time, the 50 states' depts of corporations adopts a model reform of their own requiring any purveyor of heathcare insurance or heathcare expense reimbursement coverage MUST BE A NOT-FOR-PROFIT direct-to-consumer corporation admitted under MHA2010 in the respective state as a head office or foreign (not alien) subsidiary.
Your county voted 50%/50% in the last presidential election. A political solution to the nation's health care "problem" could come from such a well balanced electorate, if your political leaders can muster the courage to lead together.
I offer an elegant, viable, 3 part solution that should please most parties except those who make money off of health care insurance companies.
No new taxes or fees,
Massive economic stimulus for small businesses,
No Federal take-over,
no need for "Public Option",
states right's rule under current law with one new set of guidelines,
universal affordable coverage for citizens,
significantly reduce the average person's annual premium while improving care received, very little contraction in health care insurance employment.
All this for nothing? Nay, but first the "new statutes":
Informed consent of the voters is required for a peaceful democracy to thrive. Ignorance breeds contempt. Contempt breeds division.
North Carolinians are all Americans first and party second, as it should be. But like many citizens around the country, they are confused by insurance. It is a complicated business. Your leaders owe you the honest information you need to make informed decisions. You owe yourselves a discriminating eye for BS peddlers. They will sell your children's future after making you pay for it today. Panic, oversimplification and something-for-nothing are the stock-in-trade of the manipulators. Knowledge and self confidence are your best defenses.
Perhaps Mr. Levy is the provocateur?
Your professor was trying to teach you to think before you speak, lest you prove yourself the fool. May take more time, but you might sound intelligent.
"tort reform" has near zero effect on health premiums. Fact. They are two different systems. If I raise your med malp premium cause of claims, you can only pass that along to the uninsured. Medicare will not pay you more cause your premiums are up. Aetna will not either. You simply make less profit.
"interstate insurance" is a myth. McCarren-Furgeson applies to rate making by settling the boundary between federal corruption laws and state's rights to regulate their industries. UHC has a subsidiary in every state where they wish to do business. Fact. In most states, they enjoy a monopoly.
"pre-existing conditions exclusions" are practiced no where else in the insurance industry. When you purchase life insurance, you are already dieing and your rates reflect that. When you purchase auto insurance, you are already a bad driver and your rates reflect that. When you purchase liability insurance, you already are being sued by someone and your rates reflect that. The only abomination that came close was the so-called "claims-made" policy for contractors, a now all-but-dead "option". Insured people know what they need coverage for.
"Insurance is a private industry vested in the public interest". This is what I learned at The College of Insurance in New York, once the Insurance Society of New York, now a part of Saint John's University. It means we are allowed to make a profit taxing everyone to pay for the catastrophes of the few. If we fail to efficiently pass through the costs, collection and dispersal, the IRS is more than willing to step in.
Because of the unique nature of Health Insurance wherein you can be better off after a claim than before (no other insurance does this. It is, therefore, the most like gambling), coupled to the amazing things medicine can do with money, you end up with a very costly system, especially if you add in the need for several layers of "profit" for the purveyors.
The only solution is Direct-to-Consumer Not for Profit legal status for all health companies, or mutualization. Directors and employees can compensate themselves handsomely, but the lack of acquisition cost and equity expense allows for 30-45% rate reductions from present. This is enough to fund universal standard care for all citizens. The only social disruption is to the unemployment of middle-men.
Intelligence trumps emotion in the human condition. It must, if we are to prosper.
Lest you think me the fool, I come to you from Republican DuPage County, Illinois. We gave you Abe Lincoln, Billy Graham and Ronald Reagan.
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