[misc.handicap] health insurance

era@ncar.ucar.edu (Ed Arnold) (12/10/90)

Index Number: 12424

This ought to p*s off the Libertarians ...	:-)

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                    ** CRISIS IN HEALTH INSURANCE **

  If you've read the "Crisis in Health Insurance" articles that
appeared in the Aug & Sep 1990 issues of Consumer Reports, you're
probably aware of how bad the U.S. health insurance problem is.
Perhaps the worst part of the problem is that the "free enterprise"
system has been unable to resolve the problem.  Competition has not
caused doctors' incomes to level off; for instance, doctors' net income
rose 12.5% last year (according to Daniel Q. Haney, AP), well above
inflation, and in spite of the fact that malpractice insurance rates
are now on the way down in Colorado, as documented by the Denver Post
and other papers.  Less than 20% of Colorado doctors will accept
Medicaid payment levels.
  In the meantime, private insurance companies continue to find more and
more reasons to *exclude* persons from their system, thus throwing them
onto government programs.  This is especially true of those with
`pre-existing' conditions, disabilities, and those in certain
occupations.  The number of persons excluded from The System is
estimated (by the Peoples' Medical Society) to be 37 million.
  Arguably the most pressing need in the current system, is that many
prospective mothers aren't receiving pre-natal care and good delivery
services.  One premature birth can cost hundreds of thousands of dollars
in medical expenses to the public.  A severely disabled child can cost
society on the order of $5 million in lost income and lifetime care.
  The extensive rules made by the insurance companies have created a
paper mill of unbelievable proportions.  Nation-wide, 26 cents of every
dollar paid for health care, goes to administrative costs of the
insurance companies and providers.  Most of that money should be going
for care.
  Frustration is not rising just on the part of consumers; some
physicians are so sick of the mess that they have founded "Physicians
for a National Health Plan", an organization now operating in 23 states.
In Colorado, PNHP is advancing the UHICO (Universal Health Insurance for
Colorado) plan, which will take the form of a bill to be submitted to
the Colorado legislature by 13 January 1991.  Plan essentials:

1. Universal: All Colorado residents
2. Comprehensive:
	All medically necessary services
	Exclude custodial long-term care, cosmetic surgery
	Commission to study long-term care, workers' comp (medical
	  portion), automobile (medical portion), medical education
3. Single Payer: No competing private insurance for covered services
4. Publicly administered: Board of Directors
5. Free choice of provider (no restriction to certain doctor groups)
6. No out of pocket costs for the consumer: No co-payments or deductibles
7. Hospitals:
	Global annual operating budgets
	Separate capital budgets
8. Providers' Reimbursement:
	Negotiated (Fee-for-service, capitation, or salary)
	No billing in excess of negotiated level
9. Funding:
	UHICO Trust Fund
	Premiums Assessed to individuals, collected with income tax
	  No premiums below 150% Federal Poverty Level
	  Fixed percentage of income thereafter to ceiling income
	    (both remain to be defined)
	  Credit to individuals for current entitlements (Medicare)
	Employers maintain current level of support (transfer current
	  health spending to wages and salaries)
	Federal and State windfall tax receipts into Trust Fund
	Tobacco and Alcohol taxes

For further information about UHICO, call Cecile Rose or Rick Bieser at
303-355-3517.
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--
Ed Arnold * NCAR * POB 3000, Boulder, CO 80307-3000 * 303-497-1253(voice)
303-497-1137(fax) * era@ncar.ucar.edu [128.117.64.4] * era@ncario.BITNET
era@ncar.UUCP * Edward.Arnold@f809.n104.z1.FIDONET.ORG

deforest@hpihoah.cup.hp.com (Martha de Forest) (12/19/90)

Index Number: 12507

> 
> This ought to p*s off the Libertarians ...	:-)
> 
Grumble, grumble, you were right.

A few observations on the "** CRISIS IN HEALTH INSURANCE **"

<stuff deleted>
> Perhaps the worst part of the problem is that the "free enterprise"
> system has been unable to resolve the problem.  Competition has not
> caused doctors' incomes to level off

We do not have true competition.  The AMA has lobbied for laws that limit
entry into the supply side of the health market.

<stuff deleted>
> 1. Universal: All Colorado residents

Colorado should expect its needy population to swell.  Where there is a 
service supplied at lower than market rate, the demand will increase.

> 9. Funding:
> 	UHICO Trust Fund
> 	Premiums Assessed to individuals, collected with income tax
> 	  No premiums below 150% Federal Poverty Level
> 	  Fixed percentage of income thereafter to ceiling income
> 	    (both remain to be defined)
> 	  Credit to individuals for current entitlements (Medicare)
> 	Employers maintain current level of support (transfer current
> 	  health spending to wages and salaries)
> 	Federal and State windfall tax receipts into Trust Fund
> 	Tobacco and Alcohol taxes
> 
Does this mean that I have two choices?

  (1) Work to pay for my needs and the needs of others, or
  (2) Don't work and have my needs seen after?

Martha de Forest
deforest@hpcuhb.cup.hp.com