Saturday, August 08, 2009

Look At the Form Before Talking Reform

Portability and pre-existing conditions are primary concerns in the health care debate. We can actually look at other areas in the economy and find the solution to this problem.

A pension is a retirement program in which one's employer invests funds on the behalf an of an employee then pays a fixed annuity on the employee's retirement. A 401K program is a program where a part of an employee's check goes into an account owned by the employee.

A 401K is inherently portabilty. It may be a hassle, but the money in the account is real and it belongs to the employee. Greedy banks with greedy employees want a shot at investing that money. There is no need for government coercion when grubby hands in the free market line up to provide investment services.

A pension is not portable because the benefit was derived from one's connection to the employer. Changing employment severs that connection.

A new employer cannot simply add the 15 years you had at your last company to your new pension. Changing jobs means you are a new hire.

Employer based medical insurance is like a traditional pension. It is not portable because it is based on the experience of the employer.

The HSA and Medical Savings and Loan are assets owned by the individual. Hence, they are inherently portable. When you change jobs, you will find a large number of grubby little hands competing for a chance to help you invest your savings.

Pre-existing clauses cannot stop a person from enrolling in an HSA. Lack of money might be a problem, but there is nothing to prevent anyone from saving.

The Medical Savings and Loan is concerned with the policy holder's ability to repay. A MS&L would be opened to accepting enrollees with current medical expenses provided the enrollee had a future income stream.

The form of health care coverage is clearly flammoxed. An authentic debate on changing the form would have included an examination of the faults of the current form of insurance.

The events around the Obamacare disaster seems indicate that the politicos at the center of power have done little thinking beyond using the current bad form of health care financing for and audacious power grab.

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