Monday, December 21, 2009

Strategizing a Way Out

The health care power grab was the result of a multigenerational disinformation campaign of the left. The process worked by first promoting insurance as if insurance were health care. The left gave deep tax breaks to insurance companies while structuring the tax code to make alternatives untenable.

Insurance is an inherently flawed business model. Insurance combines everyone's health care resources into a pool, then lavishes the politically connected members of the pool with great care and leaves those outside the group structure hanging.

The solution to a flawed business model is to create a better business.

The Medical Savings and Loan is a better business model. The MS&L depends primarily on savings. Rather than developing a group risk pool, the system using a combination of savings accounts and interest free loans to help the individual self-finance care.

A medical savings and loan looks surprisingly like an insurance policy. Employers would pay funds into the account. Employees would draw funds as needed. Unlike pure health savings accounts, policy holders will always have funds to cover needed and preventative care.

The MS&L is even progressive in that there is a transfer of wealth from the healthy to those with expensive medical needs who are unable to pay back loans.

While the Medical Savings and Loan looks a lot like insurance to an outsider, the system avoids many of the flaws of insurance. The system is individually based and is not subject to the moral hazards of pool based insurance. Policy holders are spending their money on care. Except for extreme cases, people taking out loans are expected to pay back the loans.

The bills before Congress makes all alternatives to insurance illegal.

If those who are upset about the health care power grab agitate loud enough and get the MS&L treated as insurance, then those opposed big government and big insurance could vote with their feet and pull their money out of big insurance and into the self financed medical savings and loan.

The whole health care mess is the result of the fact that insurance is an inherently flawed business model. The solution to a flawed business model is not more regulation but a better business model.

The Medical Savings and Loan is a better business model. If the right uses the travesty of the 2009 health care power grab to make the MS&L a legal alternative to insurance, then people can vote with their feet by opting out of the corrupt political structure created by the power grab.

1 comment:

Scott Hinrichs said...

But the health care takeover is "historic." Check out a political cartoonist's take on the matter.