Sunday, July 22, 2012

The Fundamental Flaw

This post is in response to a tweet.

The problem in health care is the use of group funding of individual consumption.

For example, the issues of portability and pre-existing conditions were created by group funding of individual consumption. Portability is created by group funding of care. Moving between groups disrupts care.

The "pre-existing conditions" problem is also a result of group funded care because groups want to avoid taking on people with a negative risk profile.

If we restored the concept of self funded care, there would be no portability problem. People would save money for their care and can take the money from job to job.

The pre-existing condition becomes the simply realization that some people simply lack the resources to pay for their care and need assistance.

The tort reform issue changes as well.

Group funding of individual consumption creates an artificial conflict between the individual and group. It also creates a third party with deep pockets that is at the ready to be sued.

If we restored the concept of self-funded care, we would remove the artificial conflict and we would return to a health system of direct contracts between doctor and patient.

This does not eliminate lawsuits, but it realigns the whole tort industry to the needs of the patient while removing the deep pockets which invite tort abuse.

The problem is group funding of individual consumption. The solution is to restore the concept of self funded care.

The GOP is in love with insurance companies. Insurance companies concentrates wealth and creates a deep pocketed ruling class willing to give money to GOP lawmakers.

Because the GOP is in the pockets of big insurance and big medicine, they are completely unwilling to discuss the concept of self funded care.

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