The following post comes to us from Kent Anthony, president of Anthony Insurance, who writes this article based upon his 40 years of experience in the insurance industry.
I am a small business owner and employer. My expertise is in the Property/Casualty Insurance field, but, I am also licensed in Life and Health Insurance. Not a week goes by that I don’t get a call from someone that asks for a good Health Insurance plan that is affordable. Sounds simple, right? What if that elusive question has no answer? What do I tell people who trust me and need my help? Who has the answers? Government? Private Industry?
I read a recent Pew Research study that indicated 60% of Americans said that the government has a responsibility to ensure that every resident of the United States has health care. That means to me that the majority of Americans feel it is a “right” to have the coverage. It also means, I think, that they feel that private industry is ripping people off by not giving them what they want – free, unlimited coverage.
Reality check, people: Our founding fathers set up a system of checks and balances that requires compromise in order to get laws passed. What is “broke” is that there seems to be no such thing as any type of compromise today. If it is a Democratic plan, the Republicans hate it and vice versa. To complicate things further, factions within each party make compromise impossible as they all have to have it their own way. Obamacare is a perfect example. Mitt Romney, a republican who ran for President, essentially set up the same program as Governor of the State of Massachusetts. If Mitt had been elected, I am firmly convinced that the Democrats would have been against his health care plan on political “principal” alone. National organizations, such as AARP, the AMA, Drug Companies and all of the affiliated Hospital organizations, unions of all types, you name it… force the political process to grind to a halt when they exercise their influences. They all want it their own way.
Second reality check: This stuff isn’t free. I am amazed by how many people honestly think a magic wand can be waived and that we can just pass the bills off to the “rich people.” Maybe the rich people are tired of the “jam it to the rich,” class warfare or socialistic approach to their wallets. They have tremendous political influence. Are they ready to allow themselves to pay more?
Last reality check: Obamacare was designed to fail. Whether you think it is a good or bad program, there simply isn’t any funding to pay for it. It was designed to get something in place and worry about who and how it would be paid for later. Private industry was promised reimbursement by the federal government for their losses for the first 3 years if they participated, knowing that the worst health risks would be signing up right away. The last statistic I read is that they have only been reimbursed 12.3% of what they are owed! No wonder they are bailing out of the program.
What are “fair” answers?
Compromise has to be obtained for a lasting solution. Everyone has to participate; no opt outs. All Americans have to be enrolled and pay something. Insurance, whether it is car, home, business is about spread of risk. The healthy young, the poor, the rich…everyone has to pitch in to pay. The Heritage Foundation calls it “individual responsibility.” By having people pay something we may be able to end the cycle of entitlement. We can’t have people thinking everything is “free.” It isn’t. Actuarial tables exist that show what people should pay. Subsidize disadvantaged groups if necessary, but make them pay something.
Allow the health system the legal ability to negotiate costs of drugs, hospitalization, etc. We have cost control right now in Pennsylvania for auto, medical billings and workers compensation payments. Prior to those controls, the billings were totally out of control. This has to be in place or any system will spiral out of control. I have read that doing this will lower costs 30-60%. We have to make premiums affordable and save taxpayers on Medicare programs.
Finally, I would love the healthcare industry to be mostly privatized. We have seen how government gets too tied up in politics, crippling the system. I have to point to the inadequacies, bureaucracy and cost overruns of Medicare to make a simple point: Is Government really able to run anything the way the American people need it done? Allow free and open competition, with cost controls, and you will see a system that innovates and provides incentives to be better, rather than bloated bureaucracies that are too subject to politics to provide the services that the American people want and deserve.
What has been your personal experience with health care? Do you have an opinion on how we can improve things? Share your ideas by leaving a comment!
About the Author: Kent Anthony is president of Anthony Insurance, an independent insurance agency headquartered in Lewisberry, Pennsylvania. Kent has more than 40 years of experience working in the insurance industry, specializing in both personal and business insurance. Learn more about Anthony Insurance by visiting them at www.anthonyinsuranceinc.com.