Since Rep. Paul Ryan (R - WIS) was Mitt Romney for Vice President on the Republican ticket for the White House, we have heard proposal much of Ryan's Medicare reform.
Ryan's proposal gives this 55 and younger the possibility if you Medicare eligible, traditional Medicare to take part or to choose a voucher to buy insurance in the private sector. As long as the voucher covers a significant enough part of the premiums, Ryan's proposal of health care to trim obligations, unnecessarily burden Government without Seniors should allow.
But we have to deal the underlying problem with - i.e. can leave exploding health costs - before we protect on vouchers for our seniors.
President Obama affordable care Act, but not the problem adequately. Despite what we've heard for years rising health costs are caused by the uninsured alone nor significantly. In fact decide many of the nearly 50 million uninsured do not purchase insurance and responsible figures for their health care. Main cause of the problem is fundamentals of the economy.
In most industries shop consumers usually for the best price. Typically prices restricts competition. Health care, is however completely different. Patients have little role to keep prices in check, because third-party costs patient isolate consumers from pricing. As such has virtually ceased to exist real price competition, to perpetuate the upward trend in the healthcare costs. To restore much-needed competition, we need the industry's pricing mechanism to reform fundamentally.
Accordingly, we should adopt following simple measures.
Vendors should publish or advertise the prices they charge and received from third-party payer and treatment options with patients, to discuss perspective from a medical and cost. If patients choose a provider or a treatment option, they would have to certify to their insurer that she check prices and consider them in their treatment and provider choice price.
Also certify hospital patients would their ability or inability to pay, with penalties for incorrect information - if medically possible. Provider, would also certify that she discussed prices with their patients. These measures not only competition restore, it will facilitate better communication between patients and physicians. To further facilitate competition, we must also for insured patients, out-of-network health, perhaps to look for by the Elimination of the distinction between domestic and doctors make less expensive out of network. In the following example, you will provide a useful illustration.
An insured person is patients to choose between the doctors A and b for a simple procedure. A physician is not in the network of the insurer and doctor B. The insurer pays 90 percent of the cost of network internal procedures, and 70 per cent for out of network process. Both doctors A and b are $2,000 for the procedure and doctor B charges quality doctors, but doctor charges A $1,500. Stretched above costs would be the patient with doctor B is higher than with doctor A, nevertheless it would be, that doctor B the prices are lower. Therefore can tend to the choice of a doctor in the network create upward pressure on prices.
We must also increase the supply of quality physicians and ensure their medical practices to work more efficiently and cost-effectively to reduce their operating costs. Lower prices mean lower cost as long as there is competition. We will be more doctors by improving the education and promotion of medical schools, to reduce tuition by tax policy and add by increasing the number of accredited medical schools. Tort reform is also necessary, further reducing the cost of doing business for doctors and reduce the management of unnecessary medical try. Congress should adopt to reduce addition following measures on health costs:
? Provide a tax deduction for people to buy the individual health insurance.
? Eliminating the deduction for medical expenses of more than 10% of adjusted gross income. This tax benefit are people actually incentivize, more spend their income on health care, which puts upward pressure on prices.
? Enable individuals state lines around insurance buy to cross. Interstate competition will lead to lower premiums.
? Expand the availability of flexible spending accounts.
It is time to act. If we start search and experiment with solutions that actually is the problem of spiraling health costs from price competition to make it easier, increasing the number of quality physicians and reform, in conjunction with entitlement reform, which further worsen situation much more difficult be returned tort to a point from which.
Ian linker is an attorney and former Republican candidate for the U.S. Senate from New Jersey.
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