Tuesday, June 27, 2006
NCPA President argues for portable insurance
[John Goodman, "Portable, Personal Health Insurance Solves Many Consumer Problems." Health Care News, The Heartland Institute, June 2006.]
The logic of tying health insurance to an employer was questionable even in a model where families rely on one income-earner who stays with the same company for a lifetime. As Americans move away from this and toward greater mobility - both in terms of geography and employment - it is all the more vital that individuals have coverage that travels with them:
One of the peculiarities of the U.S. health care system is that most of us have insurance plans we didn't choose: Our employers selected them. Even if we like our health plan, we could easily lose coverage when we lose or change jobs, or because of a decision by our employer.
In his State of the Union address in January, President George W. Bush proposed making health insurance individually owned, personal, and portable, enabling it to travel with employees from job to job. It is an idea whose time has come.
Portable health insurance promises a continuing relationship with an insurer and, therefore, a continuing relationship with doctors and health facilities. It also promises that if people like their health plans, they will be able to stay in them without worrying about an employer's decision or a job change.
For employers, portable health insurance means small groups are no longer treated as self-contained pools and rated each year based on changes in their employees' health status. Instead, employees become members of very large pools in which no one can be singled out because of a sudden, large medical expense, and premium increases are the same for all.
[Devon Herrick, "Health Insurance is Better to Own than Rent," The Dodge City Daily Globe, 23 March 2005.
Greg Scandlen, "Choice is Revolutionizing Health Care," The Wichita Eagle, 28 September 2004.]
The logic of tying health insurance to an employer was questionable even in a model where families rely on one income-earner who stays with the same company for a lifetime. As Americans move away from this and toward greater mobility - both in terms of geography and employment - it is all the more vital that individuals have coverage that travels with them:
One of the peculiarities of the U.S. health care system is that most of us have insurance plans we didn't choose: Our employers selected them. Even if we like our health plan, we could easily lose coverage when we lose or change jobs, or because of a decision by our employer.
In his State of the Union address in January, President George W. Bush proposed making health insurance individually owned, personal, and portable, enabling it to travel with employees from job to job. It is an idea whose time has come.
Portable health insurance promises a continuing relationship with an insurer and, therefore, a continuing relationship with doctors and health facilities. It also promises that if people like their health plans, they will be able to stay in them without worrying about an employer's decision or a job change.
For employers, portable health insurance means small groups are no longer treated as self-contained pools and rated each year based on changes in their employees' health status. Instead, employees become members of very large pools in which no one can be singled out because of a sudden, large medical expense, and premium increases are the same for all.
[Devon Herrick, "Health Insurance is Better to Own than Rent," The Dodge City Daily Globe, 23 March 2005.
Greg Scandlen, "Choice is Revolutionizing Health Care," The Wichita Eagle, 28 September 2004.]
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