People keep saying that health insurance is the path to health care. “If we can just get everybody insured, everything will be ok.” Even if that were true – and statistics indicate it is not – private health insurance is a very costly way to finance people’s health care.
We’re paying through the nose for health insurance
According to Money magazine, in 2016 alone the federal government will spend $110 billion on Obamacare alone.
That doesn’t count the billions of dollars spent by families, businesses, school districts, police, fire and other state and government employers on health insurance premiums, co-pays, deductibles and coinsurance. And costs keep rising, up over 25% for more than 22 million Americans in 2015 alone. Wowza!
Why does it suck so bad?
If you spend as much on premiums and out of pocket expenses each year as the cost of a small car, shouldn’t you expect a hassle-free experience?
But unfortunately, that’s not what we get. Right from the start, when we choose a plan, we’re making one of the most complicated decisions one can make, and choosing badly can have grave consequences. Each company has scores of plans that differ only in the small print. Yet that small print can mean an inconsequential increase in co-pay or a devastating and unexpected coinsurance bill.
Another thing, with private health insurance you don’t have the freedom to choose any doctor or hospital you want. You have to go through the provider network selected by the insurance company. Everything from your medications to your physical therapy is subject to review and possible denial by the insurer.
What makes insurance “good” anyway?
When it makes things better! I had a big car accident last year and saw my car insurance in action. I realized my “regular old- nothing special” auto insurance policy was way better than a “platinum” health insurance plan! My deductible was a reasonable $500, with no coinsurance or co-pays, and I had complete freedom to choose any mechanic I wanted.
Check out my auto insurance experience for more details, but meanwhile, here’s a table that spells out 5 major differences between auto and health insurance.
| AUTO INSURANCE | HEALTH INSURANCE |
|---|---|
| Rates are regulated | Rates are not regulated |
| Californians have saved over $100 billion on auto insurance since 1998 when Prop 103 imposed regulation on runaway premiums. | Californians have endured insurance rate increases of over 185% in the past 15 years. Every other type of insurance is regulated. Why not health insurance? |
| Policies are standardized | Policies vary dramatically |
| When you buy a policy, you know what you’re getting. Because coverage is pretty much the same, insurance companies compete on price and service. | Today, most policies must include certain benefits, but the level of financial protection and access to physicians and hospitals can vary tremendously. |
| Freedom to choose repair shop | Limited choice of doctors and hospitals |
| By state law, insurance companies cannot force you to work with particular repair shops. | Health insurers deny us true freedom of choice by requiring us to use particular doctors & hospitals |
| Platinum coverage is standard | Platinum coverage is unaffordable |
| Policies cover 100% of costs after the deductible is paid, which rarely exceeds $500. | Policies only cover a percentage of costs, with the patient’s share routinely exceeding $6,000 each year |
| No co-pays or coinsurance | High co-pays and coinsurance are customary |
| We are not required to pay anything beyond our premiums and deductible. | Besides a deductible, most of us face co-pays for each doctor visit and coinsurance of up to 30%. |
If you agree that health insurance should work as well as auto insurance does, join us. Let’s fix health care for real by getting rid of private health insurance hassles. Heck, let’s just get rid of private health insurance! Medicare for All is the way! The perfect place to start is “California” and the perfect time is “Now!”
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