Mar 25

Obamacare Replacement Will Be Expensive Unless We Can Manage Cost of Health Care #ACA #Obamacare

It’s not enough to have a free market solution to the insurance problem. 
Many forget that insurance is a way for people to pool their risk and pay costs to the unfortunate few.  It is a redistribution scheme whether voluntary or otherwise.  However insurance will always be expensive until you can find a way to manage the underlying costs…in this case healthcare.  Few people actually know how much their healthcare costs and since they have a little skin in the game they don’t care.  The high deductible Obamacare programs would help but the trouble is that the remaining coverage was way too expensive because it was loaded with all the goodies. 
The idea of Health Savings accounts will really help in this regard.
Another way to do it is to eliminate health insurance as an employee benefit. In many cases people get their insurance either paid for or subsidized by their employers and so don’t care how much it costs.  I’m OK with the employers buying group insurance as long as the full cost of coverage is passed along to the employee.  Again, it’s all about skin in the game.
We need to find a way for everyone, including the poor, have some skin in the game.  Once that happens the underlying insurance costs will go down, along with the premiums.

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