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  • What If Auto Insurance Was Subsidized And Regulated Like Health Care?

    Great op-ed by Zach Krajacic in the Christian Science Monitor yesterday:

    Imagine how much automobile insurance would cost if it paid for all expenses associated with owning an automobile – oil changes, engine failures, worn-out tires, brakes, rust, and so on. The number of people who couldn’t afford car insurance would rise dramatically, and we would have a car insurance crisis in America.

    That is the situation with healthcare. As health plans increasingly pay for almost every service or procedure, ameliorate our every discomfort, and succumb to every cultural whim and fad, the price of insurance continues to rise.

    Health plans are paying for every imaginable benefit – while automobile insurers are not – because of both consumer demand and state mandates.

    Krajacic’s health care cost diagnosis is dead-on. America’s runaway health care costs are largely due to World War II-era tax policies that anesthetize individuals to the true cost of the health care they receive and to state health insurance regulations that drive up the price of premiums.

    A better, patient-centered approach to health care would ensure:

    • Individuals are the key decision-makers in the health care system.
    • Individuals buy and own their own health insurance coverage.
    • Individuals, not employers or government officials, would choose the health care coverage and level of coverage that they think best.
    • Individuals have a wide range of coverage choices.
    • Prices are transparent.
    • Individuals have the periodic opportunity to change health coverage.
    Posted in Obamacare [slideshow_deploy]

    13 Responses to What If Auto Insurance Was Subsidized And Regulated Like Health Care?

    1. matthew, queens ny says:

      couldn't agree with this piece more. catastrophic health insurance covering accidents and serious health issues. allow a true health savings account to be instituted for all us to have and the costs would go down.

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    3. Terri from Ok says:

      Yep! The best answer to this crisis is to get Gov't the heck OUT of the way.

      I long for direct customer payment. An instant 30-40% savings in paperwork and admin!

      Direct charity to those unable to pay– the healthcare community would step up and do this.

      Any insurance would be portable and would reimburse the policy-holder.

      A credit service could easily facilitate payment at time of service, just like is done for cosmetic procedures now.

    4. Dana, Apopka, FL says:

      I couldn't agree more. My family and I left the employer system, and purchased catastrophic care and opened an HSA. We love it. We decide what care we want, when, and if the worst happens, we are covered for that.

    5. Kelly, Denver, CO says:

      Car insurance IS regulated, as are all forms of insurance. That's why few of us understand our policies and it's why all insurance is more expensive than it should be. The problem with car insurance IS the same problem with health insurance. The government has meddled in free markets and the regulations ARE the problem. The only solution to insurance/health care problems is to get the government out of it, completely! (In fact, most of the problems our country faces would be solved if the government would get out of the business of trying to control everything and go into the business of protecting our rights, period.)

    6. Tom, Pennsylvania says:

      Yes there are many common sense and cheaper ways of fixing health care other than the government option. the liberals make no bone about the fact they want socialized medicine, which will either bankrupt this country or force huge tax increases on most everyone that has a job (other than the entitlement class who historically sits around and complains about how bad they have it). Rationing is a given under this system. Just look at all he countries that have a central govn't plan. I doubt congress will not give itself the same beneifit they will demand the rest of America have, but then again they could care less about the "common folk."

    7. Wes, dallas tx says:

      Comparing health insurance to auto insurance is rediculous. I have provided myself with insurance most of my career. I own a small business now and provide insurance for 4 employees. After reading the whole article, you begin to think that everyone has insurance that covers mental health visits, cosmetic surgery and birth control. In reality, you do get to choose your coverage for the price. The author of the article has never shopped for an individual policy. The problem is that insurance companies won't tell you what is covered until the doctor has already billed you. The problem is not that insurance companies are covering too much, but that they don't disclose what they will and won't cover. If I slipped and fell on the ice while visiting family up north, my insurance won't cover an x-ray in another state. Of course, they don't disclose that until I get a 2000 dollar bill. I agree the government cannot provide us with insurance, but they do need to regulate it.

    8. Roger S., Ma. says:

      One thing is certain: any legislation to really "fix" any real problem need not be 1000+ pages.

      To the above list I would add merely the following: Any insurance company doing business in more than one state either directly or through its holdings, would be required to fulfill a few, very few but enforceable, US-wide requirements regarding transparency and understandability of contractual obligations, and responsible/responsive handling thereof. This to facilitate government's true function to protect our citizens from force or fraud. Innovative competition between companies would then take care of the rest, I'm convinced.

      Trouble is, I'm also convinced, that our Congresspersons know all this ever so well, but don't like it. Why not? Because the product they're really selling is themselves, which they can do best by selling entitlement. Buys votes in the next election, of course, with someone else's money, of course, namely our own future income.

      Legalizing what would otherwise get them in jail.

      Now there's the Ponzi scheme to make Bernie's look like a piker's. Drop all those fancy entitlements, and they could all go home for nine months each year. Minimum.

    9. John, Limon, Colorad says:

      The original government corruption was that of telling hospitals they have to treat people who can't or won't pay. This started a vicious cycle and a constant upward inflationary spiral, as costs were shifted to those who can and will pay. Medicaid and Medicare excacerbated it tremendously.

      The complementary government corruption is the government telling people who they can and can't go to for treatment, and what they can and can't have. Thus, the AMA, FDA, FTC, IRS, etc., are tools of the pharmaceutical cartel. Effective, in expensive, low-or-no side effect alternatives are snuffed out at birth, and the discoverers harassed and threatened.

      Government, is the chief cause of nearly all our problems. It is best eliminated as much as possible, kept as limited as possible, as local as possible, and as locally controlled as possible.

    10. Lynn B. DeSpain says:

      As with subsidized Automobile Industries, we will all end up at the Department of Motor Vehicles, Standing in line for our Insurance request, just as we will with our warrantee request for GM and Chrysler.

      Hozro

    11. Bryan, Washington St says:

      We support an entire industry with our "healthcare" dollars. We don't pay for healthcare, we pay for insurance to pay for it for us. Most Doctors and all hospitals have to employ a team of people to manage billing insurance.

      The Gov. solution: pay for more insurance. How can this not be a bad thing.

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    13. Jerry from Chicago says:

      Auto insurance IS run like health insurance. Illegal aliens don't buy any and the rest of us have to pay for "Uninsured Motorist" coverage.

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