Providing Hope for the Uninsured: New Plans for Solving the Healthcare Crisis
As we all know, healthcare in America is broken. It doesn’t matter if you have health insurance or not, there are a multitude of problems with the system. A recent study reports that one out of every six Americans is currently uninsured, and without insurance or access to affordable coverage, many people are forced to contend with a life-threatening situation. Fortunately for us, there is hope on the horizon in the form of new legislation.
The Health Care Reform Act has introduced several proposals aimed at providing universal coverage to all Americans and reducing costs for insured individuals by eliminating middlemen like insurers who purchase private coverage for consumers. I’m talking about the new Medicare-for-All bill.
As with most government-sponsored plans, it would be administered by the government and funded through taxation. The proposed plan will cover all medically necessary care at a standard level of health care, and will remove premiums from coverage that would have been paid by employers and patients, while also offering universal primary healthcare for all citizens at a cost of $100 billion per year (compared to the $1 trillion spent annually on medical care under our current system).
This sounds like a win-win for everyone involved. All Americans would have access to healthcare, plus the government would save a considerable amount of money by not having to pay middlemen like insurers. This piece is meant to offer several observations about how Medicare for All would work, and why it should be implemented in order to create a more efficient healthcare system.
What is the current system we’re working with?
First things first, let’s talk about what our current system looks like. Incentives for insurers and doctors continue to drive up costs over time. While the government does provide some assistance to healthcare providers who serve poor patients in the form of Medicaid and Medicare, many doctors have opted out of these programs or have stopped accepting new Medicare recipients.
The Affordable Care Act (ACA), also known as Obamacare, attempted to address this problem by requiring insurance companies to cover all applicants regardless of their medical history, and require that all individuals sign up for coverage. However, there were several problems with this legislation.
Some people would find coverage unaffordable because the cost of premiums still increased significantly under Obamacare. People also faced higher deductibles and out-of-pocket costs before insurance coverage kicked in. For example, studies indicate that the average deductible for a family has increased by 150 percent since the previous system.
Additionally, some people may not be able to afford insurance because it is still too expensive for middle class families to afford. Insurance premiums are still rising, and many families are struggling to cover their bills. This is especially true if they have a preexisting illness that excludes them from coverage completely or limits the amount of coverage they can receive (if they want to stay with their current provider).
Finally, the current system relies heavily on private health insurance companies and has created additional administrative costs because of inefficiencies associated with having private insurers handle all healthcare claims. What this means is that each insurance company has its own set of rules and requirements for doctors and patients. As a result, many people are forced to jump through hoops in order to receive coverage, and are required to fill out multiple claims forms in order for their doctor to get reimbursed.
How will Medicare-for-All solve these problems?
The idea behind the Medicare-for-All plan is simple: the government will provide health insurance at a standard level of coverage, and then subsidize premiums for patients who cannot afford them on their own. In addition, all individuals will be guaranteed healthcare by eliminating pre-existing conditions from coverage policies, requiring everyone to sign up for healthcare regardless of any medical conditions they may have.
This will have several benefits. First of all, administrative costs will be reduced dramatically because the government will be responsible for all health insurance claims. By eliminating middlemen, like private insurers, it also means that doctors and healthcare providers can focus on their patients instead of fighting with insurance companies about claims submissions.
Second, this means that individuals won’t have to deal with high deductibles or out-of-pocket expenses because insurance coverage will be provided at a standard level of care. Finally, the plan would reduce administrative costs because Medicare-for-All would only recognize one provider network that covers everyone in the country (including hospitals).
What are the concerns about this plan?
As with anything that requires significant government intervention, it’s important to examine the drawbacks of this plan as well. The biggest reason people have not been supportive of this proposal is due to the notion that Medicare-for-All (M4A) would eliminate private insurance in favor of a government-run system (Medicare). This means that individuals will still be dependent on the government for healthcare coverage.
The fact is, most people would prefer a private system over a public one, so private insurers who benefit from profits and middlemen like an employer or patient could potentially lose their customers.
Furthermore, the government can control healthcare costs. While M4A would raise taxes on high-income earners to pay for it, other sources of funding would be required in order to make the system sustainable.
Additionally, as private insurance companies are forced into extinction, many people will lose their coverage and will have no choice but to rely on Medicare-for-All and Medicaid for their healthcare needs. Doctor salaries could potentially rise significantly because less people would be paying out of pocket for health care services. Lastly, this plan could lead to rationing of healthcare by limiting access in certain areas due to limited resources.
How do we pay for it?
As I previously stated, the plan will require additional funding. While it is difficult to come up with an accurate projection because of the variability in estimates, a middle-of-the-road estimate would require an additional $19.7 trillion over 10 years. Major sources of funding could include a large tax increase on high income earners, as well as a tax on consumer services such as healthcare and property (similar to European countries). However, any changes to the tax structure would have to be approved by Congress first since it has jurisdiction over revenue-increasing programs.
Conclusion
We have to find a way to reduce the costs of healthcare in America. The current healthcare system is not working for most people and therefore will not work for all Americans. Therefore, we need to address this issue that affects nearly one-sixth of the country’s population in order to make it affordable and accessible.
Medicare-for-All would be a solution for all of our problems with healthcare because it would lower costs and eliminate high deductibles while guaranteeing access to care across the board.
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Author: Karla Bennett is a writer and communications professional who works as an account manager focusing on social media, content marketing, and e-commerce solutions.