Ways to make Health Insurance Plans Cheaper
We need to Re-establish the High Risk Reinsurance Pools that existed before PPACA, on a Federal Level, with State Level support. It is important to understand that 1% of all people spend ~30% of all healthcare dollars; so we need to pay for them a better way! The best way is to have everybody in the Country chip into one large pool to help pay those expenses; and to not do what PPACA has done today, which is to transfer those big costs to just a small group of people in the Individual and Small Group marketplaces within each State.
- The major result here would be a “decrease” in what we pay for health insurance plans, if done properly, throughout the Country.
Some States have started doing this on their own and reduced, on a one-time basis, the costs of health insurance plans in their State. However, the best approach would be a “shared-risk” model, meaning that everyone shares in the costs to cover the really sick people; and that healthcare providers and pharmaceutical companies “do not” get to bill unlimited costs.
The best way to create a shared-risk model is by extending the Medicare Reimbursement Rates to all people placed in the pool, probably people with a million dollars or more per year in expected expenses. If it becomes a question of funding the Pool, a shared-risk pool could be created. Pool example: Medicare pays 1/3rd of what a Commercial health plan pays; so have insurance companies pay 2/3rd’s of the Medicare rate to put people in the pool, while costs are paid out to Providers/Drug companies at 1/3rd the cost, with 1/3rd of the cost going toward paying for the pool expenses and reserves, with any excess funds being evenly distributed back to the Providers/Drug companies for keeping the costs manageable for the people in the pool.