The Economics of Health Insurance

Judging by the numerous recent posts on health insurance, perhaps it may be timely to share what the basics of Health Insurance - 101 - is all about.

Without insurance, let alone the vital health insurance, a compassionate society will face immense burden to building up their civilisation that leaves none behind, (unlike the bad old barbarian jungle law days our ancient ancestors once were), which is the efforts of all in every aspect of commonly known attributes for that growth. For simple illustration:-

Tom, a father of 3 young kids and a wife, was involved in an accident in a park. While playing with his kids, he smashed his head against a tree, causing an open wound in his head. He was rushed to a hospital, and was immediately treated by doctors, sworn to Hippocratic oaths and being compassionate americans, whom treated first before asking any questions, saved his life.

The cost came up to $50,000, but Tom had no insurance. After much heart wrenching moments, the hospital wrote off the costs. Thing is, America was built on compassion for others, and as such, it was billed to the federal budget.

Add 10,000 of such cases per year and it will add on and become a $500 million national debt to be paid by taxpayers, an amount which could have been used for education, infrastructure and other causes to bring in more wealth to be shared by the nation.

HOWEVER, if he had paid perhaps $100 or more a year for health insurance, and then within 6mths got into that accident, he would not need to pay for anything as the insurance company would covers it all.

How does the Insurance Companies does it?

They collect such compulsory premuims of $100 from each citizen annually. With 300 million citizens, they would have a total of $30 billion every year. Thing is, NOT everyone would need to make use of that money at the same time. Some don't even see a doctor for 10 years or more.

Thus, with those funds, the insurance companies can use 20% to generate revenues for its own admin, and to have standby funds to cover for those years that perhaps more clients will be using it for medical coverage. At the same time, they would be a bloc to challenge any increases in healthcare by the medical industrial complex, for no insurance firm will want to go broke and unable to pay if cost goes beyond their ability to pay, more so one appointed by the People - the govt.

And Society will no longer need to bear that burden of paying off citizen's health costs, freeing funds for other specific and much needed uses. A win win situation for all.

This is only a very much simplified basic but true version of it. There are other minor details, but then, humans are rational beings, and it can always be worked out peacefully, no need to be manipulated by others for political games of election or worse, armed confrontations against health care. Believe me, in armed confrontations, you will beg to have health insurance avaliable than to die, for in fights, bullets have no names and some live long with crippling injuries.

Some claimed they have no money to pay for health insurance now, and are right. But it must be made clear - it was NOT health insurance that made americans poor, but the reckless economic journey made by the elites over the past years in their casino games.

At the end of the day, americans have the right to vote. If they are against health insurance, they can always vote Republican, the party of the rich and selfish, to deny medical assistance to the middle classes turned to poverty now, and the poor, and let them die.

The founding fathers had shed blood for americans to live free and with choices. It is within every american to make that choice, to live free, including the rich, powerful and the selfish to revert back to jungle laws and ultiliterianism and fooling others to support such ideals, while the rest of americans and future generations are starved and left to die on the wayside.

The Constitution was created by noble founding fathers, based upon compassion. Rules may be in black and white, but it must be TAMPERED by compassion. The founding fathers had none, during colonnial rule, and thus the decision to create their own rule of law, and tampered by compassion.

May the names of the other 4 judges whom voted against the health insurance be made known. They had only proven themselves unconsciounable, without compassion and may be in the pay of interest groups, in their mistaken interpretation of the sacred Constitution. They should be removed by society immediately for proving their ineptitude.

Next time you go to your doctor, ask them how much the service costs without insurance.

Then, ask them how much your insurer is charged for that service.

Post to this thread once you get up off the floor.

And how many trillions are spent on illegal wars? Health care is a matter of priorities, so as the government chooses to neglect its responsibilities and rather interfere and control other nations it is now up to the insurance companies to step in. It does look like karma that the people of the world have to pay while centralised power and control continues to gain strength.

reply to post by SeekerofTruth101

Does it affect your analysis to know that in 2010, Americans bought $2.6 trillion worth of health care? If you ask all 300,00,000 Americans to pay for their health care, heck, make it 320,000,000, it will come to over $8,000 a person. Are you asking a newly married couple to cough up over $1350 a month for health care?

And Society will no longer need to bear that burden of paying off citizen's health costs.

OK, you don't want society to pay health costs. Doesn't that mean the individuals have to arrange for it somehow? Your plan, then, is what?

Oh, by the way here are some numbers on the health care plans industry : biz.yahoo.com... Please note that the Net Profit Margin is 4.5%.

I am very interested in this subject
Could you tell me more?

reply to post by Murmoshka


Not sure if it was addressed to me, but I will try to reply to it.

I am much pleased by your interest in it, but I must humbly apologise that I am incapable of explaining the complex 950 page bill of America's healthcare here, and most certainly not under 4000 characters limit on a post.

All that I can do is only to explain the very basics and essence of that bill here, simply so that more can comprehend. They are many other websites and blogs devoted to explaining in much clearer details of that bill to help americans comprehend, and it is my hope that you may take the time to check out those sources and form your own comprehension over the issue.

Good luck.

As to crux issue that some claim the constitution had been trampled upon, for forcing americans to pay for mandatory healthcare, let us coldly and clinincal consider:-

When one is uninsured, checks into the Accident and Emergencies wards, they will be healed by dedicated and compassionate doctors, whom cares naught about money. But the time, effort and costs are not free. Someone has to pay for it.

Public Hospital administration often bill such costs to the Federal Budget which comes from Federal loans, and as a result, taxpayers of this and the next generations foot the bill ultmately through paying off the National Debt.

It would not hurt wallets if just a few had medical issues, but unfortunately, humans are only mortal, and at some point of time WILL need medical help. Suppose hundreds of thousands of uninsured per year seek for mere medical operations, can a society afford to bear those costs?

Thus, in truth, the matter is not whether a citizen 'had been forced' or not forced to pay, simply because EVERY citizen will have to pay for society's healthcare one way or another. None had been turned away, despite claims that USA has no free healthcare. Truth is, USA has the highest free healthcare system in the world, for no one had ever been turn away from and Accident/Emergency ward. America will leave none behind and had been doing so for centuries.

Thus the creation of this bill, to reform it so that it ensures ALL citizens help to offset the costs, by enabling insurance companies to use ethical capitalistic ways to grow those monies, which will never be needed in full at the same point of time, to fund healthcare, instead of hitting taxpayers for the FULL costs of healthcare within a civilised society through the National Debt.

The founding fathers lived during the repressive age of serfdom, and saw many issues that were wrong in societies which affected all except the priviledged few. The nobles and gentries had full access to the best doctors, but serfs had to make do with witch doctors or blood leechers. The mortality rate of infants were horrifying low, but their leaders cared not whit, and cared only that the crops continue to be harvested, to prosper and maintain their decadent lifestyles.

Thus they created a new form of compassionate pragmatic government, one built upon responsible Liberty and Freedom for all, not just for ONE individual, but for SOCIETY as a whole.

The very essence of the sacred Constitution is to NOT leave anyone behind.

For those whom are against Healthcare, then the real issue is to NOT pay for those whom are ill and cannot afford medical help, costs of which are often beyond a lifetime's savings of the middle class and the poor. Worse when emergencies occur, for none are immuned to ill health.

Let's cut the political BS and Create a bill that INSISTS every medical attention proffered must be paid in full, regardless of full insurance coverage, partial coverage or no coverage, and to show proofs of one's financial status before being treated, or they can simply find a trashcan, haul themselves into it and die on their own.

Is this what those whom are screaming Liberty and constitution had been trampled upon wants as a society?

reply to post by SeekerofTruth101

HOWEVER, if he had paid perhaps $100 or more a year for health insurance,

A HUNDRED dollars??? Could you please list providers of this policy?! Mine is over $800 per month, and that's with a $2,000 yearly deductible.

The cost is not even relevant to the medical supplies needed. No one can say that one patient's x-rays cost $30,000.

The cost comes from greedy doctors. Here's a list of salaries. You tell me why a doctor has to make all that money, and couldn't live a great life on just half of what they're earning.

reply to post by jiggerj


The healthcare bill does come with graduated scale of premuims, based upon's one ability to pay. While there are ceilings, there are also those at the very bottom whom had been taken care of, who does not need to pay.

Ultimately, the premium issue can and must be tackle as a whole as society progresses. Just like any form of insurance, it is dependent on the amount that is annually paid out. If that can be reduced, so too will premiums.

Some of the ways are with citizens by remaining healthy, with healthy lifestyles ( not living as monks, but simply nothing done in excess such as red meats, alcohol, etc), so that that strain on paying medical costs can be reduced and saved mainly for the critical and emergency cases.

Encourage more of our youths to become doctors and professionals in the medical industries with assistances on education fees. With a higher labour pool in the market, wages will flow to sustainable cost levels, as market forces dictate.

Another is by govt oversight of unethical practises of Big Pharma whom had been unconscionably manipulating the market through monopolies, co-opting and corrupting the medical industry to justify the use of only their products, artifically inflating costs of products while even using third world slave labour production, etc.

I am not opposed to the concept of health insurance so that everyone has a stake in maintaining a system of health care for all. However, what is the true cost of health care? In the health care world there are many different providers and many more procedures and services.

Is it possible to code these procedures and services and have a reasonable charge published so that one may compare apples to apples in making decisions on the healthcare they request?

Originally posted by TabithaSpellman

Is it possible to code these procedures and services and have a reasonable charge published so that one may compare apples to apples in making decisions on the healthcare they request?

Sure it is. But how many insurance companies do you know actually do that for the sake of the patient?

www.ahima.org...

Coders work for the sake of making sure the billing is precise. They're "after the fact".