Tuesday, April 05, 2005
NCPA's John Goodman espouses new health care insurance concept
[Cheryl Hall, "Health insurance you take with you," The Dallas Morning News, 26 March 2005.]
Here is an interesting new idea from NCPA that encourages the break up of industrial-era employer-based coverage:
John Goodman, the father of health savings accounts, has embarked on another crusade. He wants a new form of corporate medical insurance that goes with employees who leave their jobs or get fired.
He calls it personal and portable health insurance. And he's pushing for legislation to make these individualized policies possible.
Dr. Goodman predicts an uphill battle with an industry that he sees as mired in old-line thinking.
His motivation?
The 58-year-old founder and president of the conservative think tank National Center for Policy Analysis in Dallas sees an alarming yet understandable phenomenon in corporate America. Companies are designing health plans that subtly encourage job applicants who need more health care to seek employment elsewhere.
He was in his mid-30s when he introduced a bold initiative called a medical savings account. In 1984, his concept was largely ignored. In 1990, only six congressmen agreed to give him an appointment to discuss it. In 2004, a federal law made Health Savings Accounts available.
He hopes to pull off a similar feat in much less time with portable health insurance, which marries group coverage cost savings with individual policy choices.
These plans would be similar to 401(k)s: Employers would set up and help fund them, but employees would own and keep the policies as they move through the labor market.
"When you go to work for an employer, you know how much the employer is going to contribute to health insurance each year and what extra portion you'll pay out of pocket to buy the type of insurance you want," Dr. Goodman explains. "Employers don't have to worry about who's sick and who's healthy. Employees don't have to worry about losing coverage if they lose their jobs."
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