The Apolitical Truth to Proposed Democratic Candidate’s Plan in the Wake of the Texas Primary

March 6, 2008 - PRLog -- The Apolitical Truth to Either Currently Proposed Democratic Candidate’s Plan in the Wake of the Texas Primary
By Mark Bellman, Texas Association of Health Underwriters

March 4 will prove to be a big day for the future of Texans, and no question, the biggest issue facing the candidates is the healthcare crisis, and the fallacy of “free universal coverage,” and the coming utopia it will provide.

One of the key elements to both Barrack Obama’s and Hillary Clinton’s healthcare proposals is the individual mandates they both have to require that certain people purchase/have coverage – in Clinton’s case: everyone, and in Obama’s case anyone under 25 years of age. It is critically important to understand that these proposals deal with the financing of health care and do not materially address the reduction of costs of overall heath care.

Let’s assume that the uninsured population that currently qualify for government programs go ahead and enroll in the programs that exist today. These people, by the way, account for approximately 33 percent of the uninsured nationally, further illustrating that existing programs and entitlements are available. We have people that qualify today, but have not taken the individual responsibility to take the initiative to sign up for the programs, a fact that we at TAHU are working to overcome.

Assuming that they now sign up, how much confidence do we have that this population, despite being too irresponsible to sign up, would then take the initiative and responsibility to access and utilize preventive services as well as lead healthy lifestyles – preventive services diagnose issues that ultimately require lifestyle changes and actions?  There would certainly be some benefit, but Americans in general overwhelmingly have been reluctant to change our self-destructive behavior. Therefore, this would not likely result in a significant reduction in the overall healthcare costs. Instead, this would likely represent a shifting of costs from the “uncompensated care” column to the state/local program.

Therefore, lets assume that we are addressing the approximately 16 percent of the uninsured population that make over $75,000 a year. In general, this segment of the population would likely be able to afford health insurance coverage, but Jane Texan has instead decided that her purchasing dollars should be allocated elsewhere. In other words, financing health care is not a priority for this group.  Again, if we were to require that this segment obtain coverage and access preventive services, would 1) irresponsible people become responsible and 2) would this materially address the overall rising costs of care? Probably not and definitely not.

The one good affect of this mandate is that it might lower the premium for those that have coverage today. However, it would likely increase the tax burden equally as there is no actual material reduction in the overall costs.

Finally, how do we force people get coverage when we can’t even give it away for free for nearly 33 percent of the uninsured population? Sadly, we cannot. This is a significant issue in the mandates that both Obama and Clinton cannot address. In Obama’s case where only people under 25 would be mandated to be covered, reaching 850,000 of Texas’ 1.5 million children.  That leaves over 56 percent of the children uninsured. In addition, how can we philosophically say that health insurance coverage should take priority over food, clothing, and shelter. Are these not “rights” as well? Why are we uncomfortable with mandating these items?

TAHU believes that we should focus on reforms that work to lower the actual cost of care so that affordable coverage is available for purchase by all – programs that focus on removing, reducing, or eliminating waste and inefficiency in the system. We support Consumer Directed Health Plans that encourage people to engage, understand health care costs, and participate in the elimination of inefficiencies and waste. We applaud all the candidates for supporting the federal government’s push for electronic health records. This change needs government support to work as consensus in the health care community and has been difficult to achieve. Electronic health records would eliminate waste and duplication in the industry and save lives.

Did you know, almost 50 percent of uninsured Texans are already qualified for government programs or have elected not to purchase health insurance, even though they could afford it.  There is another 20 percent of the uninsured that are not even citizens. This burden is not one that should be bourn by the health care industry alone.

About the Author

Mark Bellman is the media chair of the Texas Association of Health Underwriters – a consumer advocacy organization dedicated to educating consumers and businesses about the best practices in health care and health insurance. More information can be accessed at www.tahu.org.

Media Contact

Rodger Roeser, APR
Eisen Management Group
rroeser@eisenmanagementgroup.com
859.291.4302

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About TAHU

A state member of the National Association of Health Underwriters, TAHU is professional organization of agents and insurance company representatives aiming “…to inform and protect the consumer by enhancing the professional growth of its members.” Since its founding in 1930, there are now over 200 state and local chapters of the NAHU servicing the insurance needs of millions of Americans. More information can be accessed at www.TAHU.org.

Website: www.tahu.org