In the last post, I explored the Medical Savings and Loan from a Global Perspective. I discovered that the program helps people maximize the return from their individual health resources. It sets aside a massive amount of money for supplemental care and helps the foundations offering grants to maximize the return of their efforts.
Imagine that we took the total amount spent on health care each year and divided it by the population. To my surprise, I discovered that this figure is exactly $10,000.00. Who'd-a-thunk?
The insurance and health exchange paradigm says that we should charge this amount to each American, and put it into a big pool from which we can all withdraw. The Right says the big pool should be owned by big insurance companies. The left says the big pool should be owned the the state.
The proponents of insurance says that, if the average cost of health care is $10,000.00, then it is only fair that we charge everybody $10,000.00.
If the Federal Reserve holds inflation at zero, then average health care expenses over a life time will be $400,000.-- per person over a 40 year working career.
But what about the poor sought who makes under $16,000? You take $10,000 from the working poor and they are pretty much left with nothing. The person making $8.000 a year is left in $2,000 in debt, where is he going to get this money?
With this demand that each person pays the same dollar amount, the insurance paradigm throws all sorts of people onto the welfare role.
I worked in the insurance industry for many years. What I discovered was that the rich and politically powerful spend more on health care than the poor and disenfranchised.
The insurance pools I examined all showed that insiders with connections to the pool always got more and better care than those on the outside.
What insurance does for the rich is it places an upper cap on the amount that they have to spend for their health care.
The current design of pooled insurance has the effect of transferring massive amounts of wealth from the working class to the upper class.
In contrast, the Medical Savings and Loan looks at each person as whole entity. It compares (individual by indivual) health expenses to total income. The program tells people they are expected to self fund their care. If a person cannot, it makes grants available.
It removes the upper cap on health expenses for the rich. It gives the working poor direct control of the first chunk of their personal assets and starts any subsidies at a lower level.
If you compare traditional insurance with the Medical Savings and Loan, you discover the effect of insurance is to transfer wealth from the poor to the rich.
The Health Exchanges ObamaCare and passed by the Utah Legislatures are nothing but a pathetic attempt by the ruling elite to protect the insurance industry from the ill social effects of the product they created.
Needless to say, I favor scrapping the Health Exchanges and starting a dialogue about alternatives to insurance. I have a wonderful presentation on the Medical Savings and Loan. If your group would like to spend an engaging evening talking about health reform, please Contact Me.