Quit Wasting My Healthcare

Healthcare Reform & Consumerism

I continue to read countless articles about the various healthcare reform bills that really do not have much to say other than everyone disagrees on how to move forward and whatever happens should cost more than financial bailout.  Well, I guess there are tidbits about a public insurance option, increased taxes for the wealthy, and some protection for those with pre-existing conditions. 

Does all of this healthcare reform talk have any implications for consumers?  The answer is not yet but it might over the long run.  For the interim, I suspect it will be business as usual because of the huge financial forces keeping the current system in place –  the great “hidden” private insurance tax subsidizing the true cost of government programs.  Medicare and Medicaid pay 25% less than the cost of care and private insurance pays 27% more than the cost of care.  The net 2% is profit for large healthcare system providers which supports growth and ongoing innovation.  This dynamic is known to everyone in government healthcare and private healthcare.  At the end of day, the reality of this huge cross-subsidy and lack of meaningful plans to rebalance the situation will result in a stalemate with any new healthcare legislation that might jeopardize the viability of this industry dynamic – the only reason seniors and those with financial hardship can enjoy the truly comprehensive benefits of government healthcare.

It doesn’t mean that this dynamic is appropriate and should continue.  That is where you as a healthcare consumer can continue to help.  By avoiding the 27% overpayment for healthcare, a consumer puts pressure on the healthcare system one decision at a time to either become more efficient or find new ways to balance and allocate the cost of care.  This is the kind of change I can believe in…