Monday, February 11, 2013

Medical Savings Accounts would Reduce Poverty

Poverty is a state of being in which you own nothing.

Socialism tries to end poverty by ending ownership. The effect of socialism is that socialists create a dystopia with people reduced to abject poverty while an empowered elite controlling all aspects of life.

The way you end poverty is to structure society that people own things.

Using medical savings accounts to fund health care instead of insurance would dramatically reduce poverty because people would own the resources in their medical savings accounts.

If we gave every American a Medical Savings Account at birth and put their health care dollars in the accounts there would be fewer poor people.

Good portions of the money would be invested in housing. This would increase the percentage of Americans who own their house outright and reduce the systemic risk created by mortgages.

I used the term Medical Savings and Loan to differentiate my discussion from the HSA/HDHP offered by some firms. A high deductible policy with an HSA is still an insurance product.

I advocate a system of medical savings accounts supplemented by loans and grants. This system would put substantially more money in the accounts of the worker.

In the status quo, employers take about a half million dollars from each worker to provide care.

If your insurance policy costs $10,000 per year, you will end up paying over $400,000 in insurance premiums. You also have co-pays and deductibles.

If you add in the Medicare Tax; you will find that the ruling elite are taking over a half million dollars from each worker to provide for their care.

My analysis shows that if we replaced insurance with the Medical Savings and Loan, that your average working class family would have accounts with $100,000 to $200,000 by the time they retire.

Most of this money would be in housing. More working class Americans would own their house reducing the systemic risk of mortgage default.

Of course, people would end up selling their house to pay for care when they retire. But it is better to have a house to sell than to have a huge mortgage against a house at retirement ... as is common these days.

The growing poverty in America is frightening. This growing poverty is the result of the way we structured health care. Americans used to save for their care and were rich as a result.

Unfortunately, we listened to the likes of Warren Buffett and put our health savings into insurance pools.

By doing such, we undermined the once mighty American Middle class and reduced millions of Americans into poverty.

If we seek a restoration of the American experiment in self rule, we need to create an alternative to insurance. (an HSA plus high deductible insurance policy is still insurance).

Anyway, I conclude by repeating:

Poverty is a state of owning nothing and being helpless. The way to reduce poverty is to structure society around ownership.

Creating an alternative to insurance would help restore an ownership society. It would reduce poverty by increasing the amount of stuff owned by the working class and lower middle class.

If there is anyone on this planet brave enough to discuss free market health care, please contact me. I live in Utah. I am willing to travel. BTW, Utah is pretty. Here is my tumblr gallery of Utah.

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